KUALA LUMPUR: MLABS Systems Bhd
has aborted the RM260mil proposed takeover of footwear manufacturer Bage (China) Co Ltd (Bage HK), which would have resulted in a significant change in its business direction.
In a filing with Bursa Malaysia, the multimedia video conferencing system and equipment assembler said it and the vendor, Bage Holdings Ltd, had decided not to extend the exclusivity period for signing definitive agreements.
This was after taking into consideration “the recent market conditions,” Mlabs said without elaborating.
The company, which posted a loss before tax of RM0.51mil for the 15-month period ended March 2016 amid a challenging videoconferencing market, had on June 3 inked a non-binding heads of agreement (HOA) with Bage Holdings with the intention of signing definitive agreements within 60 days, with an option to extend for another 30 days.
Bage HK’s principal activity is investment holding. Through its sole operating subsidiary QuanZhou Bage Sports and Leisure Goods Co Ltd, Bage HK is involved in the design, brand management, distribution and/or manufacture of footwear, as well as the brand management, distribution and/or design of apparels and accessories under the brand name Bage.
QuanZhou Bage is also an original equipment manufacturer of local and international footwear brands.
The proposed purchase of 100% equity in Bage HK was to be settled by issuing 4 billion new ordinary Mlabs shares of 5 sen each.
Mlabs shares rose 1 sen to close at 9 sen on Monday.
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