Credit: Dreamstime
Publicly listed small cap mining entity Lanka Graphite has come to an agreement with computer reseller MSY Technology to terminate its acquisition as Lanka pursues other opportunities.
According to a statement to shareholders, Lanka said that while it was working cooperatively with MSY with a view to further progress the acquisition, Lanka had received approaches regarding other potential acquisition opportunities in the bio-pharmaceutical industry. Instead, Lanka will now focus on spending $12 million on buying up Oculus Biomed.
As a result Lanka plans to repay MSY the $1 million advanced loan, which was going to be used for working capital and transaction costs.
The mining company upped its price tag for MSY to $19.8 million in July last year after making an initial offer in August 2018 of $17.5 million.
At the time, Lanka said the acquisition satisfied certain conditions but was still subject to a few more including obtaining all shareholder approvals; receipt of an independent expert’s report and capital raising between $3.5 and $4.5 million.
Lanka hasn’t given any further detail behind its decision, other than saying the termination has enabled it explore other acquisition opportunities.
MSY has been around for more than 22 years selling computers, computer parts and software. It has an online store to complement its 28 physical retail outlets across Australia.
