AsiaPhos Limited: Update on the Proposed Acquisition of Exquisite Mode Sdn Bhd

Key Highlights for Investors

• AsiaPhos Limited has been pursuing the acquisition of a 97.41% stake in Exquisite Mode Sdn Bhd from United Malayan Land Bhd (“Vendor”).
• The company had previously announced its entry into a binding term sheet with the Vendor and set a termination date for the agreement, which has now been extended to 30 March 2026.
• Malaysian Court has granted an Injunction restraining the Vendor from entering into definitive agreements with AsiaPhos pending resolution of a dispute among the Vendor’s shareholders.
• This injunction effectively puts the proposed acquisition on hold, introducing significant uncertainty into the deal’s completion.
• AsiaPhos is actively discussing the implications of the injunction with the Vendor and considering next steps.
• The Vendor has indicated its intention to proceed with the acquisition if and when the injunction is lifted or discharged.

Important Information for Shareholders

Shareholders and potential investors should be aware that the progress of the acquisition is now subject to legal proceedings in Malaysia. The injunction prevents the Vendor from finalizing the sale until the shareholder dispute is resolved. This situation introduces significant risk and uncertainty regarding whether the transaction will be completed.

This is a material development that may impact share values, as the acquisition was expected to be a major strategic move for AsiaPhos Limited. The company’s ability to execute its growth plans and expand its business through this acquisition now depends on the outcome of external legal proceedings, which are beyond its control.

In addition, the company has cautioned shareholders and investors to exercise caution when trading in AsiaPhos shares. There is no certainty or assurance that the definitive agreements will be executed or that the proposed acquisition will be completed at all.

AsiaPhos will continue to make further announcements as required, keeping shareholders updated on any new material developments relating to the acquisition and the legal proceedings.

Potential Price Sensitivity

• The injunction and the resulting uncertainty regarding the acquisition are likely to be price sensitive and could impact AsiaPhos’s share price.
• Investors should monitor future announcements closely, as the lifting or discharge of the injunction could quickly change the outlook for the acquisition.
• Any resolution of the shareholder dispute and finalization of the acquisition would be a significant event for the company.

Next Steps

• AsiaPhos will continue discussions with the Vendor to assess the implications of the injunction and determine the appropriate next steps.
• The company remains committed to keeping shareholders informed about all major developments.

Disclaimer

This article is provided for informational purposes only and does not constitute investment advice. AsiaPhos Limited has cautioned that the proposed acquisition is subject to the execution of definitive agreements and resolution of external legal proceedings, and there is currently no certainty or assurance that the acquisition will proceed. Investors should exercise caution and consult their financial advisors before making any investment decisions.

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