KUALA LUMPUR: Kretam Holdings Bhd’s shares fell over 35% in early trade, on news that Hap Seng Plantations Holdings Bhd had dropped its RM1.18bil takeover bid.
Kretam is among the biggest losers on Bursa Malaysia, falling 35.97%, or 27 sen to 44.5 sen. It is the second most active counter with 68 million shares traded.
Kretam’s proprietary day trading (PDT) and intra-day short selling (IDSS) activities were suspended from 9.09am on Monday after it hit limit-down.
Hap Seng Plantations plan to acquire a 55% stake in Kretam for RM1.18 billion has
fallen through as the results of the due diligence of Kretam to be “unsatisfactory and unacceptable”.
Accordingly, Hap Seng Plantations said it has exercised its right to terminate the share sale agreements with immediate effect, with which the group will not extend the proposed mandatory general offer for all the remaining Kretam shares not included in the deal, for a cash consideration of 92 sen per share.