Telecommunications equipment provider CCT Telecom Holdings says its plan to take a $120 million stake in electronic products-maker Honko International in exchange for one of its manufacturing units has fallen through.
CCT said its sale-and-purchase agreement with Honko lapsed after Honko failed to gain stock exchange permission to issue 120 million new shares.
No reason for Honko's failure was given.
CCT agreed in August to take a 25 per cent stake in Honko, paying for the stake by transferring its electronic sales unit to Honko.
CCT directors said the company's expected profit of $80 million from the deal now would not materialise.
CCT, which changed its name from China Treasure Telecom at the end of last year, last week raised $2.25 billion by selling new shares.
