Palette aborts plan to acquire majority stake in Genopharma

PETALING JAYA: Palette Multimedia Bhd, which recorded a net profit of RM512 million for the fourth quarter ended June 30, has aborted its plans to acquire 51% equity interest in Genopharma Sdn Bhd (GSB).

The company's board of directors said in a filing with the stock exchange, it has decided to not proceed with the proposed acquisition as the current financial performance of GSB is below expectation.

Palette announced on November 24, 2016 it had entered into a term sheet with Liu Zhen and Tan Yi Wen to acquire the equity interest for RM1.53 million.

It's revenue for the quarter under review stood at RM4.19 million.

The company which is predominantly involved in designing, developing and marketing of information technology related products's recorded a net loss of RM954,000 for the current financial year.

Its cumulative revenue on the other hand stood at RM5.71million.

Its shares were up 15.38% to close at 7.5 sen with some 1.22 million shares changing hands.