Axington Inc’s proposed reverse takeover deal to acquire 60% of a China-based information services business for $405 million has fallen through.
Under the proposed terms of the deal, indicated in an MOU and first announced on July 8, Axington will pay the vendor, Gao Hong, new Axington shares at no less than 19 cents each and also a cash portion of $30 million.
According to Axington, the valuation of the target company, Veivo Web Technology, as indicated by the vendor, is $676 million.
In its Aug 8 announcement, Axington said that parties could not reach a sale and purchase agreement within the long stop date or exclusivity period dated Aug 7.
Neither was there an agreement to extend the dates to allow further negotiations.
“Accordingly, the MOU has lapsed and will cease to have further effect,” the company states.
Axington is controlled by the Loh cousins, Terence and Nelson, who have been in the news for the wrong reasons.
They shot to notoriety after their purportedly Paris-based company Bellagraph Nova announced a $503 million bid for UK football club Newcastle United.
The move triggered scrutiny into their backgrounds and doubts over claims that Bellagraph Nova, run together with their partner Shen Che, had revenue of more than 12 billion euros.
The trio also published doctored photos of themselves with former US president Barack Obama.
The RTO of Axington was announced just as Terence was declared bankrupt for owing $70 million to various creditors.
Terence and Nelson had fallen out and they’ve split their business interest. The latter has reportedly left the country.
See also: Axington, linked to Loh cousins, in $405 million RTO deal
