By Xavier Kong
CHINA-BASED China Automobile Parts Holdings Ltd (CAP) has failed to acquire plastics and electrical appliances provider Local Assembly Sdn Bhd (LA) in a move to climb out of PN17 territory.
CAP, which manufactures car parts, signed a memorandum of understanding (MoU) with LA on July 5 but the agreement was terminated on Nov 25.
According to CAP, the termination happened after the sellers of LA’s assets said they had not received a valid and executed term sheet.
“The seven market days’ delay in the announcement of the termination of MoU was due to the company’s efforts to liaise with the sellers (LA) to reverse the said termination. However, as at the date of this announcement, the company has exhausted all means to do so and is unable to reverse the said termination,” CAP said in a Dec 4 filing with Bursa Malaysia.
CAP was listed on the Main Market at end-January, 2013.
The LA acquisition was part of CAP’s efforts to restructure its finances after falling into PN17 on Jan 11 last year. This was after auditors expressed concern over CAP’s balance sheet for the financial year ended Dec 31, 2015.
CAP never recovered, having failed to file its annual reports since 2016. On Sept 4 last year, Bursa Malaysia fined three CAP directors a total of RM1.52 mil for breaching stock market rules.
