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Thursday, 3 May 2018

(The Star) GDex terminates deal to buy stake in MBE M’sia

PETALING JAYA: GD Express Carrier Bhd (GDex) has terminated its agreement to acquire a 100% stake in retail postal firm Mail Box Etc Malaysia (MBE Malaysia) for RM5.5mil due to certain conditions precedent not being met.

First announced on March 1, GDex had plans to grow its company’s customer-to-customer (C2C) segment with this acquisition.

As of May 2, GDex said the company and the sellers had arrived at an agreement that the conditions precedent were not fully satisfied as at the cut-off date of April 30.

“The parties have agreed that the cut-off date would not be extended and thus the agreement is now deemed terminated,” it said in a filing with Bursa Malaysia.

The termination of the proposed acquisition would not have any material impact on the existing business or financial position of the company, said GDex.

MBE Malaysia’s principal business involves mailbox services, packaging, shipping, photocopying and printing, typically catering to local entrepreneurs and small and medium enterprises.

MBE Malaysia forms part of the postal service franchise network of MBE Worldwide SPA, which has over 4,500 centres across more than 30 countries.

MBE Malaysia has 92 outlets in Malaysia, compared to GDex’s 79 branches.

MIDF Research had previously said that GDEx would gain greater insight into the retail delivery space from the acquisition of MBE Malaysia, which could translate into tailoring better services, especially for the C2C customers.