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Aluminium dealer Compact Metal Industries, which is trying to grow in the cement business, will not be buying a majority stake in an unfinished Mozambican cement plant.
A conditional binding term sheet inked in June has lapsed, the board of directors said on Monday.
Under the deal with vendors SPI – Gestão e Investimentos and Guhava Serviços, Compact Metal would have paid US$30 million for a 51 per cent stake in a cement plant in Salamanga, in Mozambique.
The company would also have had to settle up to US$54.7 million in debts to the plant’s suppliers and service contractors, as well as pony up the funds needed to complete the plant construction.
But the board said on Monday that Compact Metal did not end up entering into the relevant conditional sale and purchase agreements, and the parties now have no further obligations under the term sheet.
“The group will continue to explore potential and suitable acquisitions, joint ventures and strategic alliances,” the board announcement added.
Separately, Compact Metal is involved in a restructuring plan that could see it transfer its shares and listing status to International Cement Group by scheme of arrangement. A shareholder meeting to approve the decision has been slated for Jan 25, 2019.
The counter closed down by 0.3 Singapore cent, or 9.09 per cent, to S$0.03, before the latest news.Source: The Business Times / Singapore
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