Latexx Partners Down 9%; Buyout Plan Aborted

Latexx Partners (7064.KU) is down 9% at MYR2.42 after the company says the planned MYR852 million buyout of its assets and liabilities by U.S.-based private-equity firm Navis has been aborted as the companies couldn't agree on the terms, a dealer says. Latexx Partners says the exclusivity period granted to Navis unit Navis Asia VI Management Co. on the planned buyout expired Sunday, and the parties "have not been able to agree" on the terms of the deal. In January, Navis offered MYR3.10 a share for Latexx's business, assets and liabilities. Navis wasn't immediately available for comment. The dealer says the recent high latex prices, strong ringgit against the greenback and the uncertain outlook for the latex glove-making industry may have contributed to the talks breaking down; "this knee-jerk reaction to the news is not unexpected, but the company remains resilient and sales are strong." He tips support at the intraday low of MYR2.39 to stay intact.