| General Announcement |
| Reference No CI-061129-1506A |
| Company Name |
: |
KIA LIM BERHAD |
| Stock Name |
: |
KIALIM |
| Date Announced |
: |
29/11/2006 |
|
|
 |
| Type |
: |
Announcement |
| Subject |
: |
KIA LIM BERHAD ("KLB")
~ RECURRENT RELATED PARTY TRANSACTION ("RRPT") |
Contents :
Pursuant to Paragraph 2.0 of the Practice Note 12/2001, the Board of Directors of Kia Lim Berhad ("KLB") wishes to announce that in the course of the Group's operations, its wholly owned subsidiary, Kangkar Raya Batu Bata Sdn. Bhd. ("KRBB"), has entered or shall enter into recurrent related party transactions of revenue or trading nature ("Transactions") which are necessary for the Group's day-to-day operations with Sri Senangar Batu Bata Sdn Bhd ("SS"), a supplier of bricks at an estimated value of RM150,000 (Ringgit Malaysia: One Hundred And Fifty Thousand Only).
The Transactions entered into are in the ordinary course of business, made at arm's length, on normal commercial terms and on terms not more favorable to the related party than those generally available to the public and are not to the detriment of the minority shareholders.
As the estimated value of the Transactions falls within the ambit of the Paragraph 2.0 of the Practice Note 12/2001, that is,
a) the consideration, value of the assets, capital outlay or costs of the Transactions is equal to or exceeds RM1 million; or
b) the percentage ratio of such Transactions is equal to or exceeds 1%,
whichever is the lower.
Thus, the Company is required to make an immediate announcement instead of obtaining shareholders' mandate for such Transactions.
INFORMATION ON SS
SS (Company No. 124405-W), a company incorporated in Malaysia on 7 August 1984 with its relevant information as follows:-
i) Authorised capital of RM1,000,000-00 comprising of 1,000,000 ordinary shares of RM1.00 each.
ii) Paid-up capital is RM630,000-00.
iii) Its principal activity is bricks manufacture.
RATIONALE OF RRPT
The transactions entered into by the Group are intended to meet business needs at the best possible terms and to enhance the Group’s ability to explore beneficial business opportunities.
EFFECTS OF RRPT
1. Share capital
The RRPT is not expected to have any significant effect on the share capital of KLB Group.
2. Earnings and Net Assets
The RRPT is not expected to have any significant effect on the Earnings and Net Assets for KLB Group.
DIRECTORS AND MAJOR SHAREHOLDERS' INTEREST
Save as Disclosed below, none of the Directors and substantial shareholders of KLB or any persons connected with them have any interest, direct or indirect, in such Transactions:-
A Director of KLB, namely Tan See Chip, and certain family members of certain directors, namely Datuk Ng Eng Sos @ Bah Chik, Datuk Ng Yeng Keng @ Ng Ka Hiat and Tan See Chip, are directors of SS. Certain directors of KLB, namely Datuk Ng Eng Sos @ Bah Chik, Datuk Ng Yeng Keng @ Ng Ka Hiat, Tan See Chip, and/or their family members are substantial shareholders of SS.
STATEMENT BY THE DIRECTORS
The Board, after careful deliberation, is of the opinion that the transaction is in the best interest of KLB Group.
APPROVALS REQUIRED
This RRPT does not need any authorities' and shareholders' approval. |
