TATA Steel subsidiary, NatSteel Asia Pte Ltd, has terminated its sale and purchase agreement with Perth-based Vietnam Industrial Investments Ltd after VII shareholders voted against the deal. NatSteel had aimed to acquire the company’s 70 per cent interest in Vinausteel Ltd and 100 per cent interest in Structure Steel Engineering Pte Ltd for about $14.3 million. A last-minute, $16.2 million takeover offer for 100 per cent of VII by the company’s managing director, Henry Lam Van Hung, backed by investment group Prudential, wasn’t enough to swing company’s independent directors away from the Natsteel bid, in part to mitigate against any claims NatSteel may have had against the firm. While the Prudential bid remains on the table, NatSteel has reserved its rights with respect to various alleged breaches of the agreement, claiming breach of the no-shop clause and the open suggestion by VII that the company would consider higher bid than that of Natsteel, were one to appear. VII disputes these allegations.
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