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ACQUISITION OF THE REMAINING ORDINARY SHARES IN RAJANG PLYWOOD (SABAH) SDN. BHD., A SUBSIDIARY COMPANY OF EKSONS CORPORATION BERHAD
The Board of Directors of Eksons Corporation Berhad (“Eksons” or “the Company”) wishes to announce that Eksons has on 11 May 2009 acquired the remaining 200,000 ordinary shares of RM1.00 each representing 0.8% of the issued and paid-up share capital of Rajang Plywood (Sabah) Sdn Bhd (“RP Sabah”) from Mr. Lee Kim Jiung (199,999 ordinary shares) and Ms. Lim Leh Nguk (1 ordinary share) (hereinafter called “the Vendors”) for a total cash consideration of RM2/- (“the Acquisition”).
1. Information on RP Sabah
RP Sabah was incorporated under the name Gau Yang Plywood Sdn. Bhd. on 8 July 1999 as a private limited company under the Companies Act, 1965. RP Sabah adopted its present name on 22 January 2002. With the Acquisition, Eksons’ equity interest in RP Sabah increases from 99.2% to 100%, making it a wholly-owned subsidiary of Eksons.
The principal activity of RP Sabah is manufacturing and trading in plywood.
2. Basis of Purchase Consideration
The purchase consideration of the 1 ordinary share of RM1.00 each from Ms. Lim Leh Nguk, free from lien and encumbrance was arrived at on a willing buyer-willing seller basis. The purchase of the 199,999 ordinary shares of RM1.00 each was part of the settlement of legal suits previously announced on 24 March 2009.
3. Source of Funding
The Acquisition is funded with internally generated funds.
4. Rationale
Eksons is currently the 99.2% registered and beneficial owner of total issued and paid-up shares of RP Sabah. The Acquisition will allow Eksons to have complete management, operational and financial control over RP Sabah.
5. Financial Effect
As the Acquisition is satisfied in cash, it does not have any material effect on the net tangible assets per share, earnings per share, share capital and substantial shareholders’ shareholdings of the Eksons Group for the financial year ending 31 March 2010.
6. Approval required
The Acquisition is not subject to any approval from the shareholders of Eksons or any relevant authorities.
7. Directors and Substantial Shareholders interest
Mr. Tay Hua Sin, Mr. Sui Uh Hing and En. Faizal Bin Abdul Aziz are Directors of RP Sabah.
Save as disclosed above, none of the Directors, or substantial shareholders of Eksons or its subsidiaries and/or persons connected with them have any interest, direct or indirect in the Acquisition.
8. Statements by the Board of Directors
The Directors of Eksons are of the opinion that the Acquisition is in the best interest of the Company.
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