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Disposal Of Ikhlas Kekal Sdn Bhd

BackFeb 25, 2008

INTRODUCTION

Knusford Berhad (KB or the Company) wishes to announce that its wholly-owned subsidiary, Wengcon Holdings Sdn Bhd (WHSB) had disposed of 520,000 ordinary shares of RM1.00 each representing 51% of the issued and fully paid up capital in Ikhlas Kekal Sdn Bhd (IKSB) for the sum of Ringgit Malaysia One (RM1-00) only on 25 February 2008 .

 

INFORMATION ON IKHLAS KEKAL SDN BHD

IKSB was incorporated in Malaysia under the Companies Act, 1965 on 13 October 1997. The Authorised Share Capital of IKSB is RM5,000,000-00 and the Issued and Paid-up is RM1,020,000-00. The principal activity of IKSB is rebuild and reconditioning of Government’s earth moving equipments and Design and build dredgers.

 

 

 

FINANCIAL INFORMATION

As at 31 December 2006, IKSB has a Loss Before Taxation of RM253,894-00 against a revenue of RM156,828-00 and an Accumulated Loss of RM1,015,085-00.

 

 

 

FINANCIAL EFFECTS

The effective cut-off date shall be as at 31 December 2007, therefore all impairment losses have been accounted for during this period.  The above transaction will not have an immediate effect on the earnings per share and net tangible assets per share of KB’s Group for the current financial year.

 

 

 

SHARE CAPITAL & SUBSTANTIAL SHAREHOLDERS

The share capital and substantial shareholders’ shareholding of KB remain unchanged.

 

 

 

APPROVAL

The above transaction does not require the approval of shareholders’ and the relevant government authorities.

 

 

 

DIRECTORS’ INTEREST

None of the Directors, substantial shareholders and / or persons connected with a director or substantial shareholder has any interest, whether direct or indirect in the above transaction.

 

 

 

RATIONALE

IKSB has accumulated losses which exceeded the equity of the Company. As the Company has been unable to procure additional projects over the last 2 years, more losses is anticipated.

 

 

 

DOCUMENTS

The Share Sale and Purchase Agreement will be made available for inspection at the registered office of WHSB at 33-35, Ground Floor, Wisma Ekovest, Jalan Desa Gombak 6, Taman Sri Setapak, Off Jalan Gombak, 53000 Kuala Lumpur, during normal office hours from Monday to Friday (except public holidays).

 

 

 

STATEMENT BY THE BOARD OF DIRECTORS

The Board, after having considered all aspects of the above transaction, is of the opinion that the above transaction is in the best interest of the KB Group.

 

 

 

RISK FACTORS

There are no risk factors in the said transaction.

 

 

 

ESTIMATED TIME FRAME FOR THE COMPLETION OF THE TRANSACTION

The transaction is expected to be completed in one month’s time.

 

 

 

STATEMENT WHETHER THE INTENDED TRANSACTIONS HAVE DEPARTED FROM THE COMMISSION’S POLICIES AND GUIDELINES ON ISSUE/OFFER OF SECURITIES

To the best of the knowledge of the Board, there is no departure from the Commissions’ Policies and Guidelines on Issue/Offer of Securities.