KUALA LUMPUR (July 15): Ni Hsin Resources Bhd has aborted its plan to acquire a 22.73% stake in Seamog Group Sdn Bhd through a share subscription agreement entered into by both companies on Feb 13.

This is in view of the adverse global economic condition coupled with the Covid-19 pandemic, which the group said is untenable for both parties to proceed with the plan.

"The board of directors of Ni Hsin wishes to announce that Seamog and Ni Hsin had vide a letter dated July 15 mutually terminated the agreement," it said in a bourse filing today.

Ni Hsin had earlier proposed to subscribe to 250,000 shares in Seamog, an integrated oil and gas (O&G) services and solutions provider, for RM250,000 cash.

This would have seen Ni Hsin hold a 22.73% equity interest in Seamog with the latter becoming an associate company of Ni Hsin.

Ni Hsin is involved in the manufacturing of premium stainless steel multi-ply cookware in Asia.

Shares in Ni Hsin closed unchanged at 23 sen today for a market capitalisation of RM73.99 million. A total of 8.36 million shares were traded.