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Due diligence on sale of RedHot units taking longer than expected

By BFN News | 02:52 PM | Monday 22 August, 2011

Due diligence by PUC Founder (MSC) on RedHot Media's regional operations and subsidiaries in Malaysia and China is taking longer than expected. RedHot Media agreed the sale of RedHot Media Group Sdn Bhd, Red Media Asia Limited and Ausscar Group Sdn Bhd to Founder in November for RM95m which will be satisfied through the issue of 950 million new ordinary shares. RedHot Media said that on 19 August Founder announced that the required applications to the relevant authorities in Malaysia to seek approval for the proposed disposal are expected to be made within the next three months, i.e. by 16 November 2011 - within 12 months of the announcement - and not by 16 August, as announced by RedHot on 2 June. The delay in the submission of the applications by Founder is due to the underestimation of the time required by Founder to complete the due diligence because of the size of RedHot's regional operations and subsidiaries in Malaysia and China. The disposal is subject to shareholder approval. At 2:52pm: (LON:RHM) share price was 0p at 29p Story provided by