South Korea’s Jeju Air has scrapped plans to acquire a majority stake in compatriot low-cost carrier Eastar Jet.

Jeju says in a stock exchange disclosure that the stock sale contract was cancelled due to violation of key terms and an overdue transaction closing period, without going into details.

It says: “Due to a lapse of the agreement, the stock [sale] contract has been cancelled.”

Jeju announced in December it would acquire 51% of Eastar for W69.5 billion ($58 million). In March, both parties agreed on a lower, W54.5 billion cash consideration. The deal was set to close on 26 June.

Jeju also guarantees the performance of the memorandum of understanding signed by both parties, for W11.5 bilion. The sum would have been included in the sale price upon conlsuion of the agreement.

Without elaborating, Jeju indicates in its latest disclosure there were no violations around the terms of this guarantee.

Cirium has contacted Jeju for comment.