Sasbadi Holdings Bhd has officially terminated its proposed acquisition of intellectual property from Integra Creative Media Sdn Bhd (ICMSB), a publisher of children's books operating under the Oyez!Books brand.

The termination was announced today and follows the non-execution of the Master Assignment Agreement by ICMSB within the stipulated 90-day period.

Consequently, ICMSB is obligated to refund the deposit of RM100,000 within seven days.

Sasbadi has clarified that it does not plan to pursue legal action unless the deposit proves unrecoverable.

Importantly, the termination is not anticipated to have a material effect on Sasbadi's earnings and net assets for the financial year ending August 31, 2024.

Despite this unexpected turn of events, Sasbadi Holdings underscores its resilience, pointing to the substantial outstanding order book of RM4.7 billion as a crucial factor supporting future growth.

The acquisition journey began when Sasbadi's wholly-owned subsidiary, Media Distribution Sdn Bhd (MDSB), entered into a term sheet with ICMSB on April 18, 2023.

The agreement aimed at acquiring intellectual properties related to early childhood publications and the "Oyez!Books" brand, with an agreed purchase price of RM1 million.

The settlement involved a combination of cash and the issuance of new shares in MDSB.

Following the completion of the due diligence review on October 17, 2023, both parties signed an Addendum to address specific conditions.