Details of Announcement

General Announcement

Reference No MM-040315-63499

Submitting Merchant Bank	:	AMMERCHANT BANK BERHAD
Company Name	:	KIA LIM BERHAD
Stock Name	:	KIALIM
Date Announced	:	15/03/2004


Type	:	Announcement
Subject	:	KIA LIM BERHAD ("KIA LIM" OR "COMPANY") PROPOSALS

Contents :

KIA LIM BERHAD ("KIA LIM" OR "COMPANY")

APPLICATION TO THE SECURITIES COMMISSION BY E.S. NG HOLDINGS SDN BHD, KIA LIM REALTY SDN BHD ("KL REALTY"), KIA LIM TIMBER TRADING SDN BHD ("KL TIMBER"), NG HOO TEE HOLDINGS SDN BHD ("NHTH"), DATUK NG ENG SOS @ BAH CHIK, NG YENG KENG @ NG KA HIAT AND NG YENG KENG HOLDINGS SDN BHD (COLLECTIVELY KNOWN AS "CONCERT PARTIES") FROM THE OBLIGATION TO UNDERTAKE A MANDATORY GENERAL OFFER FOR ALL REMAINING SHARES IN KIA LIM NOT ALREADY OWNED BY THEM UNDER PRACTICE NOTE 2.9.3 OF THE MALAYSIAN CODE ON TAKE-OVERS AND MERGERS 1998, RESULTING FROM :-

- THE PROPOSED DEBT RESTRUCTURING SCHEME (PROPOSED DRS") INVOLVING THE SETTLEMENT OF OUTSTANDING PRINCIPAL AND INTEREST AMOUNTING TO RM44,667,924 OWING BY THE SUBSIDIARIES OF KIA LIM TO THE PARTICIPATING BANKERS BY WAY OF:-

(A) SETTLEMENT OF 40% OF OUTSTANDING PRINCIPAL BY THE ISSUANCE OF RM15,716,000 NOMINAL VALUE OF 4%, 10-YEAR REDEEMABLE CONVERTIBLE SECURED LOAN STOCKS ("RCSLS") OF RM1.00 EACH TO BE ISSUED AT 100% OF ITS NOMINAL VALUE TO THE PARTICIPATING BANKERS;

(B) THE RESTRUCTURING OF 40% OF THE OUTSTANDING PRINCIPAL; AND

(C) THE SETTLEMENT OF 20% OF OUTSTANDING PRINCIPAL AND OUTSTANDING INTEREST BY THE ISSUANCE AND ALLOTMENT OF 13,235,924 NEW SHARES TO THE PARTICIPATING BANKERS

(HEREINAFTER REFERRED TO AS THE "APPLICATION")

This announcement is dated 15 March 2004.

We refer to our announcement dated 29 October 2003.

AmMerchant Bank Berhad, on behalf of the Board of Directors of Kia Lim, wishes to announce that the Securities Commission ("SC"), vide their letter dated 9 March 2004, has not approved the Application by the Concert Parties from the obligation to undertake a mandatory general offer for all remaining shares of Kia Lim not already owned by them under the Practice Note 2.9.3 of the Malaysian Code on Takeovers and Mergers, 1998 resulting from the Proposed DRS.

Nevertheless, the Board of Directors of Kia Lim intends to proceed with the other proposals, as announced on 29 October 2003, which are pending the decision of the SC.

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