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- Following the termination, Econframe said it will receive an earnest deposit of RM1 million within seven days, along with the balance deposit of RM4.6 million from ETA Industries.
KUALA LUMPUR (July 16): Metal door and window frames manufacturer Econframe Bhd (KL:EFRAME) said it is not proceeding with its plan to acquire a 70% stake in ETA World Sdn Bhd, a company involved in industrial property development and construction activities.
This is because the conditions precedent in the agreement between Econframe and the seller of the stake, ETA Industries Sdn Bhd, had not been fulfilled within the specified timeframe.
In a filing with Bursa Malaysia on Monday, Econframe said it had mutually agreed with ETA Industries not to extend the period for fulfilling the conditions precedent, resulting in the termination of the deal.
Following the termination, Econframe said it will receive an earnest deposit of RM1 million within seven days, along with the balance deposit of RM4.6 million from ETA Industries.
Initially proposed on Jan 15, Econframe had initially agreed to acquire the 70% equity interest in ETA World from ETA Industries for RM56 million. The acquisition was to be funded through a combination of cash and the issuance of shares.
The deal included a guarantee that ETA World would achieve an audited profit after tax of not less than RM10 million annually for three years.
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