Metallurgical testing firm Ammtec Ltd does not expect to sell its 68 per cent interest in a US company anytime soon as a $29 million deal to offload the interest falls through.
The Balcatta-based company said today that the buyer of its 68.5 per cent interest in resin manufacturer Purity Systems Inc failed to settle the transaction by the October 30 deadline.
Ammtec had announced in August it was offloading its stake, saying too much effort and capital was required to develop the resin technology, which would have impacted further on the company's earnings per share.
Ammtec paid $4.3 million for PSI when it took majority control last year, and incurred $400,000 of PSI's loss of almost $600,000.
Ammtec said today that while the unnamed buyer may choose to pursue the stake at a later date, it is under no obligation to sell the interest to that buyer.
It added that it did not expect to sell the PSI shares in the near-term.
As a result of the deal falling through, Ammtec has reverted its fiscal 2009 projections to the original guidance of $10 million for net profit, down from $12.2 million.
Shares in Ammtec dropped 15 cents to $2.85 at 14:16 AEDT.
