INTRACO is terminating its proposed acquisition of a 51 per cent stake in digital asset platform MHC Digital, slightly over two years after the mainboard-listed trading company inked an agreement to do so with Australian entrepreneurs Mark Carnegie and Sergei Sergienko, or MHC’s sellers.
On Monday (Apr 22), the company said this was because a clause in the conditional agreement with MHC’s sellers had not been fulfilled to date.
All parties have mutually agreed to terminate the acquisition after the sellers sent an Apr 19 letter to Intraco, which the company received on Apr 21.
They have also agreed not to have any claim against each other for damages, costs, compensation, or otherwise.
Shares of watch-listed Intraco : I06 0% were trading S$0.005 or 1.9 per cent higher at S$0.27 on a cum-dividend basis as at at 3.36 pm on Monday, after the group’s latest announcement.
Intraco first announced its proposed investment in MHC after entering into a binding heads of agreement (HOA) with the sellers in December 2021, where conditions were revised in a second HOA inked later in the same month.
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On Feb 7, 2022, the company announced the most recent terms of its proposed acquisition that placed the deal at about S$47.2 million in value at the time.
The transaction was contingent on certain conditions, including the acquisition target achieving a 12-month consolidated group net profit after tax of at least S$18.5 million within 24 months of the acquisition agreement dated Feb 7, 2022.
Intraco received Singapore Exchange’s in-principle approval on Apr 11, 2022.
The transaction was also approved by its shareholders at its extraordinary meeting held on Jun 6 that year, with 100 per cent of eligible votes cast in favour of the deal.
