Thong Guan terminates F&B unit sale to major shareholder

PETALING JAYA: Thong Guan Industries Bhd will not go ahead with its plan to sell its food and beverage (F&B) business to its largest shareholder, Foremost Equals Sdn Bhd (FESB).

FESB has a 37.03% stake in Thong Guan.

In a filing to Bursa Malaysia, Thong Guan said it will refund the deposit of RM60mil to FESB interest-free within 14 days from the termination agreement, which was today.

The group said it terminated its plans due to both parties failing to reach an agreement on the final sale price, which was higher than the purchase consideration proposed on Nov 21, 2024.

“Pursuant thereto, the group will continue its operations in the food and beverage business segment,” it said.

The termination of the sale is not expected to have any impact on Thong Guan's earnings, net assets, or gearing for the financial year ending Dec 31, 2025.

The board noted it is in the best interest of the group to go ahead with its plans.