News

INTRODUCTION

We refer to our announcements on 25 June 2015 and 29 June 2015 in relation to the Joint Venture Agreement entered between Kota Ekspres Sdn Bhd (“KESB”) and Greenland Malaysia Urban Development Sdn Bhd  (“Greenland”).

TRANSACTION

The Board of Directors of Knusford Berhad is pleased to announce that KESB had on 25 August 2015 acquired and subscribed for 337,500 ordinary shares of RM1.00 each at par value representing 45% of the issued and paid-up share capital of Greenland Knusford Construction  Sdn Bhd as stated in the announcement. The remaining 412,500 ordinary shares have been subscribed by Greenland.

INFORMATION ON GREENLAND KNUSFORD CONSTRUCTION SDN BHD

Greenland Knusford Construction Sdn Bhd (“JV Co”) was incorporated on 13 July 2015 for the purpose of the joint venture.  The JV Co has an authorised share capital of RM750,000.00 comprising of 750,000 ordinary shares of  RM1.00 each of which 750,000 shares have been issued and paid-up after the subscription by KESB and Greenland. The principal activity of the JV Co is civil engineering and building works.

FINANCIAL EFFECTS

The transaction does not have any effect on the share capital and/or substantial shareholders’ shareholdings and are not expected to have any material effect on the earnings per share, net assets per share and gearing of the Knusford Berhad Group. However, the transaction is expected to contribute positively to the Group’s earnings in the future.

DIRECTORS’ AND/OR MAJOR SHAREHOLDERS’ INTERESTS

Save for Mr. Lim Chen Herng and Mr. Lee Hun Kheng, who are directors in the JV Co, none of other directors and/or major shareholders of the Company and/or person connected with them have any interest, direct or indirect in the transaction.

APPROVAL REQUIRED

The transaction does not require the approval of shareholders of the Company and/or other relevant authorities.