AHB's proposed acquisition of EV automotive distributor scrapped

TheEdge Tue, Apr 23, 2024 09:40pm - 2 months View Original


KUALA LUMPUR (April 23): Office furniture maker AHB Holdings Bhd’s foray into the electric vehicles (EV) business has encountered a setback as its planned acquisition of a 51% stake in automotive distributor CAF Motor Sdn Bhd was mutually terminated.

AHB in July 2023 announced that it had entered a non-binding term sheet with CAF Motors’ sole shareholder, CAF Global Tech Sdn Bhd for the acquisition. The 51% stake in CAF Motors was valued at RM10 million, to be satisfied via cash and shares issuance.

CAF Motors is principally involved in the business of distributing, importing and exporting electrical and non-electrical motor vehicles.

In a bourse filing on Tuesday, AHB said the termination of the 51% stake acquisition in CAF Motors was due to conditions precedent of the proposed acquisition not being fulfilled.

“The termination of the term sheet does not have any financial impact on the company and its subsidiaries,” it added.

AHB’s share price closed up 0.5 sen or 3.8% to 13.5 sen, bringing the company a market capitalisation of RM96 million.

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