WZ Satu scraps plan to acquire SILK Highway

PETALING JAYA: WZ Satu Bhd has aborted its plan to acquire SILK Highway for RM368 million.
WZ Satu told Bursa Malaysia last Friday that an agreement on the terms of the definitive agreement could not be reached with SILK Holdings Bhd.
“Accordingly, WZ Satu and SILK Holdings have on Sept 23, 2016 mutually agreed, by way of an exchange of letters dated Sept 23, 2016 between their respective solicitors, not to proceed with the proposed acquisition as they are unable to agree on the final terms for the definitive agreement,” it said.
WZ Satu said the termination of the head of agreement is not expected to have any material effect on its earnings per share and net assets per share for the financial year ending Aug 31, 2017.
WZ Satu shares rose 2 sen to RM1.03 last Friday on some 76,500 units done.
The termination could give another chance to Taliworks Corp Bhd, which has expressed interest in SILK Highway.
In May, Taliworks said it was close to concluding a deal to buy SILK Highway. A month later, however, WZ Satu announced that it had entered into an agreement with SILK Holdings.