| |
|
|
 |
 |
 |
 |
Details of Announcement
| General Announcement |
| Reference No CC-080228-4DDD1 |
| Company Name |
: |
KIA LIM BERHAD |
| Stock Name |
: |
KIALIM |
| Date Announced |
: |
28/02/2008 |
| Type |
: |
Announcement |
| Subject |
: |
KIA LIM BERHAD
- RECURRENT RELATED PARTY TRANSACTION |
|
| |
| 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 ("Transaction") which are necessary for the Group's day-to-day operations with Ban Dung Palm Oil Industries Sdn Bhd ("BDPO"), a supplier of palm shell at an estimated value of RM500,000 (Ringgit Malaysia: Five Hundred Thousand Only) ("Estimated Value"), from December 2007 to forthcoming Annual General Meeting to be held on May 2008.
The Transaction entered into is in the ordinary course of business, made at arm's lenght, on normal commercial terms and on terms not more favorable to the related party than those generally available to the public and is not to the detriment of the minority shareholders.
As the Estimated Value of the Transaction 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 Transaction is equal to or exceeds RM1million; or
(b) the percentage ratio of such Transactions is equal to or exceeds 1%,
whichever is the higher.
INFORMATION ON BDPO
BDPO (Company No. 53686-T), a company incorporated in Malaysia on 28 December 1979 with its relevent information as follows:-
i) Authorised capital of RM 25,000,000.00 comprising of 25,000,000 ordinary shares of RM 1.00 each.
ii) Paid-up capital is RM8,849511.00
iii) Its principal activity is oil miller.
RATIONALE OF TRANSACTION
The Transaction entered into by the Group is intended to meet business needs at the best possible terms and to enhance the Group's ability to explore beneficial business opportunities. The Estimated Value arises due to the significant price hike in palm shell.
EFFECTS OF TRANSACTION
1. Share capital and Substantial Shareholders' Shareholding
The Transaction is not expected to have any significant effect on the share capital and substantial shareholders' shareholding of KLB.
2. Earnings Per Share, Net Assets Per Share and Gearing
The Transaction is not expected to have any significant effect on the Earnings Per Share, Net Assets Per Share and Gearing for KLB.
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 Transaction:-
Directors of KLB, namely Datuk Ng Eng Sos @ Bah Chik and Datuk Ng Yeng Keng @ Ng Ka Hiat are both directors and major shareholders of BDPO.
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 Transaction does not need any authorities' and shareholders' approval. |
|
|
|
