KUALA LUMPUR (Feb 5): KJTS Group Bhd (KL:KJTS) said on Thursday that its proposed acquisition of Malakoff Utilities Sdn Bhd (MUSB) announced a year ago has fallen through.

The acquisition of the energy-efficient cooling unit of Malakoff Corp Bhd (KL:MALAKOF) officially lapsed after two conditions precedent were not fulfilled by the extended long stop date of Feb 3, according to a bourse filing.

Under the terms of the agreement, Malakoff is required to refund the purchase deposit of RM6.55 million to KJTS within five business days. Thereafter, both parties will have no further claims against each other, except for any prior breach.

KJTS said the lapsing of the sales and purchase agreement is not expected to have any material impact on its earnings or net assets.

The company added that the revised use of RM44.4 million in proceeds originally allocated for the proposed acquisition has yet to be determined.

Shares in KJTS have come under heavy selling pressure amid delays in completing the MUSB acquisition

The stock plunged almost 40% last week to 80 sen from RM1.30, before sliding another 12.5% to 70 sen in subsequent sessions.

Since announcing the deal, KJTS has sought several extensions as conditions precedent remained unmet. In its latest update, the company told analysts it would not be able to meet the Feb 3 deadline.

KJTS has been trading largely on forward expectations of project acquisitions. While some collaborations have been signed, new deals have been limited. The setback with MUSB has undermined market confidence in its execution capabilities and weighed on valuation multiples, given that investors had been pricing in earnings contributions from the asset.

Some analysts estimate MUSB could have generated up to RM9 million in annual earnings for KJTS. For comparison, the group reported a net profit of RM13.33 million on revenue of RM148.61 million for the nine months ended Sept 30, 2025.