Kretam shares hit limit down after Hap Seng Plantations calls off purchase

PETALING JAYA: Shares of Kretam Holdings Bhd hit limit down Monday after major shareholders' disposal of a 55% stake to Hap Seng Plantations Holdings Bhd was called off.
Kretam's share price fell as much as 30 sen or 43.2% to 39.5 sen, the lowest level in the past three years. At the market's close, it was down by 23.5 sen or 33.8% to 46 sen on 167.35 million shares done, being the most actively traded stock.
Short selling of Kretam shares was suspended for the rest of the day after the counter hit limit down in the morning, according to Bursa Malaysia.
Meanwhile, Hap Seng Plantations closed unchanged at RM2.29 with 28,200 shares traded.
Last Thursday, Hap Seng Plantations announced the termination of its buyout of Kretam, saying the due diligence results of Kretam were "unsatisfactory and unacceptable".
Hap Seng Plantations had announced in February that it was acquiring 55% of Kretam for RM1.18 billion or 92 sen a share from Kretam CEO Datuk Lim Nyuk Sang @ Freddie Lim and Santraprise Sdn Bhd, triggering the 33% mandatory takeover offer threshold.
Hap Seng Plantations had intended to maintain the listing status of Kretam.