LifeTech Scientific (HKG:1302) will not proceed with its proposed acquisition of a roughly 96.46% stake in Starway Medical Technology after failing to reach an agreement with the seller on definitive transaction documents, according to a Monday Hong Kong bourse filing.

The company said the parties were unable to reach a consensus after negotiations and it no longer believes an agreement can be achieved within a reasonable timeframe.

It added that continuing the process could create uncertainty and adversely affect its operations and shareholder confidence.

The proposed transaction, announced in May, valued Starway at about 1.94 billion yuan and would have been funded through the issuance of convertible bonds rather than cash.

Starway develops vascular interventional medical devices used to treat congenital heart defects and prevent cardioembolic stroke, an earlier filing said.