KUALA LUMPUR (Jan 25): Vortex Consolidated Bhd, formerly known as SKH Consortium Bhd, said today it has scrapped plans to buy a 70% stake in property developer Rimbun Gabungan Sdn Bhd (RGSB) for RM12 million cash.

In a filing with Bursa Malaysia today, Vortex said the share sale agreement was mutually terminated as Vortex and the vendors, namely Bijak Fajar Sdn Bhd and Newston Development Sdn Bhd, were unable to reach a consensus over the terms for the post completion business arrangement between both parties pursuant to the proposed acquisition.

"The monies refunded will be allocated for the working capital purposes of Vortex Group," it added.

RGSB is involved in a proposed affordable housing project, which has an estimated gross development value of RM252 million, located on an 11,391 sq m piece of government land in Setapak, Selangor. On July 12, 2018, Vortex had announced the planned acquisition of the stake in RGSB as it would provide the group an opportunity to participate in the proposed development.

Vortex said the termination will not have any material impact on the group's net assets and gearing for the financial year ending March 31, 2019.

"However, the potential benefits expected to be derived from the proposed development to be undertaken by RGSB in future could not be materialised," it noted.

At 3.56pm, Vortex shares were down 0.5 sen or 3.12% at 15.5 sen today, with 294,700 shares done, bringing a market capitalisation of RM47.27 million.