Swee Hong Limited (SGX:QF6) entered into a non-­binding memorandum of understanding to acquire Hunan Chudi Hengda Inspection Co., Ltd from Lu Wenge, Luk Yee Lin Ellen, Ai Mizoguchi, Cheng Wang, Kenji Takashi and Andrew Bek on August 3, 2018. Post acquisition, Hunan Chudi Hengda Inspection Co., Ltd will operate as subsidiary of Swee Hong Limited. The deal is subject to consummation of due diligence, entering into a definitive formal agreement and other conditions. Swee Hong Limited, Hunan Chudi Hengda Inspection Co., Ltd, Lu Wenge, Luk Yee Lin Ellen, Ai Mizoguchi, Cheng Wang, Kenji Takashi and Andrew Bek on shall negotiate in good faith to agree on the terms and conditions of the definitive agreement within three months from the date of the memorandum of understanding or such longer period as they may agree in writing. If they have not entered into a definitive agreement by the specified period, any party can terminate the memorandum of understanding by providing not less than seven days written notice to the others. Swee Hong Limited (SGX:QF6) cancelled the acquisition of Hunan Chudi Hengda Inspection Co., Ltd from Lu Wenge, Luk Yee Lin Ellen, Ai Mizoguchi, Cheng Wang, Kenji Takashi and Andrew Bek on December 3, 2018. The memorandum of understanding lapsed because the parties to the transaction were unable to agree on the terms of the acquisition. The termination will not have any material impact on the net tangible assets per share or earnings per share of Swee Hong Limited for the financial year ending June 30, 2019.