Sarawak Consolidated Industries calls off Carlton Gardens deal

PETALING JAYA: Sarawak Consolidated Industries Bhd (SCIB) has terminated its proposed acquisition of the entire equity interest in Carlton Gardens Sdn Bhd (CGSB) for RM9.5 million due to a breach by the sellers.
CGSB owns and operates an interlocking block Industrialised Building System factory in Beaufort, Sabah and has been awarded a contract by Stone EPC (Sabah) Sdn Bhd (SEPC) for the supply and installation of interlocking blocks and associated structural and finishing works for SEPC’s project to construct 620 residential units together with necessary amenities, utilities, facilities and infrastructure at Beaufort, Sabah.
SCIM had on April 19, 2018 issued a notice of termination of the share sale agreement dated Dec 28, 2016, entered into between SCIB and Asgari Mohd Stephens, Brian Francis Ticcioni and Gaya Belian Sdn Bhd. The purchase price was supposed to be paid in two tranches.
“SCIB’s solicitors were of the view that there was a breach by the sellers and SCIB has a cause for action for misrepresentation, hence SCIB is entitled to terminate the contract or void the contract for misrepresentation. As a result, SCIB was of the view that there is a good chance that all costs can be recovered. Hence, the termination of the share sale agreement is not expected to have material impact on the financial position of SCIB group,” SCIM said.
SCIB closed down 5% to 57 sen today on 5,000 shares done.