IJM Corp Bhd’s planned RM124 million acquisition of a 44.83% stake in Pestech International Bhd has been canceled due to unmet conditions.

The deal, which would have made IJM the largest shareholder in Pestech, was mutually terminated.

Despite the failed acquisition, Pestech’s joint venture with IJM for the RM175.65 million automated people mover project at Kuala Lumpur International Airport (KLIA) remains unaffected.

Pestech, facing financial difficulties, is now exploring alternative fundraising options.

Shares in Pestech closed 4.5 sen or 20.93% lower to 17 sen today, giving it a market capitalisation of RM164.84 million. IJM shares fell five sen or 1.55% to RM3.18, giving it a market capitalisation of RM11.6 billion. — TMR