Imagi International (HKG:0585) terminated a proposed HK$167.3 million share subscription between its subsidiary Imagi Fin Group and Aceso Life Science (HKG:474), according to a Thursday Hong Kong bourse filing.
Under the original deal, Aceso was to increase its stake in Imagi Fin to 30.7% by subscribing for 2,102 new shares, with the consideration settled by issuing 1.39 billion Aceso shares to Imagi Fin.
The deal would have diluted Imagi International's stake in Imagi Fin from 79.21% to 68.39% and given Imagi Fin Group a larger stake in Aceso.
The parties terminated the agreement as its conditions were not expected to be met by the Sept. 30 long-stop date.
The proposed transaction will not proceed, and the company said the termination will not materially affect the group's operations.