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Industrial
Concrete Products Berhad (“ICP”), a wholly-owned subsidiary of the
Company, has on 17 August 2009 entered into a Supplemental Shares
Transfer Agreement with Sapphire Plus Sdn Bhd (“SPSB”) in relation
to the disposal of 2,400,000 ordinary shares of RMB1 each
representing 4% equity interest (“the Disposal”) in ICP Jiangmen Co.
Ltd. (“ICP Jiangmen”) for a cash consideration of RMB2,400,000
(approximately RM1,236,000). The consideration was arrived at on a
willing-buyer and willing-seller basis.
The expected gain on the Disposal is approximately RM43,000, being
the difference of the total consideration of RMB2,400,000
(approximately RM1,236,000) compared with the 4% net book value of
the assets of ICP Jiangmen at RMB2,316,000 (approximately
RM1,193,000). The original cost of investment by ICP for its 79%
stake in ICP Jiangmen is RMB47,400,000. The proceeds of the Disposal
will be utilized for working capital purpose. The Disposal has been
approved by the Board of Directors of the Company, and is pending
the approval of the relevant authority in China.
ICP Jiangmen is a limited liability company incorporated and
domiciled in the People’s Republic of China. The authorized and
issued and paid-up capital of ICP Jiangmen is RMB60,000,000 divided
into 60,000,000 ordinary shares of RMB1 each. ICP Jiangmen is
principally involved in the manufacture and sale of PHC piles. With
the Disposal, ICP Jiangmen will be a 75% subsidiary of ICP.
SPSB is a company incorporated in Malaysia. The authorized and
issued and paid-up capital of SPSB is RM2,000 divided into 2,000
ordinary shares ordinary shares of RM1 each. The principal activity
of SPSB is investment holding. Mr Lim Yong Keat (“LYK”), a former
director of ICP who has resigned from ICP Board on 24 April 2009,
owns 99.5% equity interest in SPSB.
The Disposal is not expected to have significant effects on the
earnings per share and net assets per share of the Company for the
financial year ending 31 March 2010. Other than LYK, none of the
Directors or major shareholders of the Company, or persons connected
with them, has any interest, direct or indirect, in the Disposal.
The summary of the financial information of ICP Jiangmen for the
past three (3) financial years from 31 March 2007 to 31 March 2009
is set out in the enclosed
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