SINGAPORE (April 22): Global Invacom, has cancelled its proposed US$200 million ($280 million) acquisition of Tactilis due to “difficulties in fulfilling all of the conditions precedent” in the sale purchase agreement (SPA) it signed with the vendor last year.
With the termination also comes the cessation of 5% coupon-rate convertible notes meant to be issued by Tactilus.
At the same time, the proposed reverse convertible note (RCN) issuance agreement had also lapsed on Jan 22 this year as conditions for the closing of the first sub-tranche of the Tranche 1 RCN Notes were not fulfilled.
In a filing on Sunday, the satellite broadcast solutions manufacturer says the decision to terminate the acquisition was mutual between itself and the vendor – and therefore the SPA’s break fee of US$20 million will be waived.
Upon entering into a tripartite termination agreement with the vendor on 18 April, Global Invacom has agreed to bear all related fees, costs and expenses with the vendor in equal proportions.
Shares in Global Invacom closed 6.7% lower at 4.2 cents on Thursday.
