The sales and purchase agreement last July by Sakae Holdings 5DO ' controlling shareholder Douglas Foo to sell part of his stake to an entity called Makara Capital has lapsed.
However, in an update on Nov 8, Sakae Holdings, citing Foo, says that the agreement remains "in force" and parties are in still in talks on a "new completion date".
Sakae Holdings, famous for its chain of sushi outlets, announced on July 19 2023 that Foo, executive chairman of the company, has reached an agreement to sell a 27,794,400 shares to Makara Capital for $26.5 million.
This works out to the equivalent of 95.3 cents per share, a stark difference from the then last traded price of 9.9 cents.
The stake of nearly 27.8 million shares is equivalent to 20% of the company. Foo holds just under two thirds of the company that he founded.
However, in conjunction with the update on this transaction, Sakae Holdings announced in a separate filing that one Ali Ijaz Ahmad, who controls Makara Capital, the buyer, has resigned from Sakae's board on Nov 7 "to focus on his busy work commitments."
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Ali Ijaz Ahmad was appointed to Sakae's board on July 25 2023, a week after the proposed transaction with Foo was announced.
The developments triggered SGX to query Sakae Holdings on further details of the agreement which has lapsed.
In its response, Sakae, citing information provided by both Foo and Ali, the latter has asked for an extension to effect the completion of the transaction.
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"Mr Foo has agreed in principle to grant the extension, and parties are in discussions on a new completion date.
The company says that it will update accordingly when a new completion date has been fixed.
"The company has sought information from Mr Foo on the above, including reasons for the delay in effecting completion of the SPA and when it expects completion of the SPA to occur," says Sakae in its response to SGX.
"However the company understands from Mr Foo that Makara Capital has not provided any further information on the sales and purchase agreement as it is an ongoing transaction," says Sakae.
Sakae Holdings shares last traded at 9 cents, down 43.75% year to date.
