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INTRODUCTION
Knusford Berhad (KB or the Company) wishes to announce that the Company had on 12 November 2010 subscribed for 40,000 ordinary shares of RM1.00 each at par value representing 40% of the enlarged issued and paid-up share capital of CBD Development Sdn Bhd (CBDD).
INFORMATION ON CBD DEVELOPMENT SDN BHD
CBDD was incorporated in Malaysia under the Companies Act, 1965 on 7 April 2010. It has an Authorised Share Capital of RM100,000.00 divided into 100,000 ordinary shares of RM1.00 each and is fully issued and paid-up. CBDD is currently dormant.
The Shareholders of CBDD are as follows;
Knusford Berhad - 40,000 ordinary shares
Kumpulan Prasarana Rakyat Johor Sdn Bhd - 30,000 ordinary shares
Danga Bay Sdn Bhd - 30,000 ordinary shares
Kumpulan Prasarana Rakyat Johor Sdn Bhd is an investment arm of the Johor State Government and Danga Bay Sdn Bhd is a private property development Company. Dato’ Lim Kang Hoo, a Director of Knusford Berhad, is a Director and Substantial Shareholder in Danga Bay Sdn Bhd. Mr. Lim Keng Cheng, another Director of Knusford Berhad is also a Director in Danga Bay Sdn Bhd.
RATIONALE FOR THE SUBSCRIPTION
CBDD has been identified by Unit Perancang Ekonomi Negeri Johor (UPEN Johor) to participate in the Proposed Transformation Plan for Johor Bahru City (Cadangan Pelan Transformasi Bandaraya Johor Bahru).
SALIENT POINTS IN REGARDS TO UPEN JOHOR’S LETTER
1. CBDD will have to pay Ringgit Malaysia: One Million (RM1.0 million) to Johor Bahru Sentral Sdn Bhd (JBSB) in consideration of them agreeing to novate to CBDD their right to participate in the Proposed Transformation Plan .
2. The shareholding in CBDD shall be as follows;
Knusford Berhad - 40 %
Kumpulan Prasarana Rakyat Johor Sdn Bhd - 30 %
Danga Bay Sdn Bhd - 30 %
3. For the interest of the public and the implementation of the Transformation Plan, CBDD shall issue 1 Golden Share;
4. The Golden Share shall be held by the State Secretary, Johor (Incorporation).
FINANCIAL EFFECT
The subscription will not have any effect on the share capital and net tangible asset of KB and no immediate material effect on the earnings of the Group. However, the Board expects CBDD to contribute positively to the growth of the Group in later years.
APPROVAL
The subscription does not require the approval of shareholders’ and the relevant government authorities.
STATEMENT OF DIRECTORS
The Board after taking into consideration all the relevant factors and after careful deliberation is of the opinion that the subscription is in the best interest of the Group |
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