Announcement Details/Table Section :
Further to the announcement made by Ekovest Berhad (Ekovest) on 23rd February 2011, Ekovest is pleased to announce that it has on 29 March 2011, signed a Joint Venture & Shareholders’ Agreement (the Agreement) with Malaysian Resources Corporation Berhad (MRCB) and KL Bund Sdn Bhd (KLBSB), in relation to the River of Life (ROL) Project.
The purpose of the Agreement is for the parties to regulate their rights and obligations inter-se as shareholders of KLBSB, currently a dormant company, which will act as the Project Delivery Partner for the ROL Project, an Entry Point Project (EPP) identified in the Greater Kuala Lumpur/Klang Valley National Key Economic Area under the Economic Transformation Program (ETP).
KLBSB was incorporated on 21 November 2008 and has an authorised share capital of RM100,000.00 comprising 100,000 ordinary shares of RM1.00 each of which 2 shares have been issued and paid-up. Pursuant to the Agreement, KLBSB will have an Authorised and Issued & Paid-up share capital of RM100.0 million and RM10.0 million respectively in ordinary shares with shareholdings as follows:
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Shareholders
|
No. Of Ordinary Shares
|
% Of Equity Interest
|
|
MRCB
|
4,000,000
|
40
|
|
Ekovest Berhad
|
6,000,000
|
60
|
|
Total
|
10,000,000
|
100
|
The parties also agreed with the issuance of redeemable preference shares which shall be determined and agreed by the parties at a later date or at such other time as mutually agreed between them.
Ekovest will finance its portion of investment in KLBSB through internally generated funds and/or bank borrowings. KLBSB will provide an avenue for Ekovest to participate in one of the Government’s ETP projects.
The joint venture is not expected to have any material effect on the earnings, net assets per share and gearing of Ekovest for the financial year ending 30 June 2011 and is not subject to the approval from any authorities or shareholders of Ekovest.
None of the Directors and/or major shareholders of Ekovest or any persons connected to them have any interest, direct and/or indirect in the joint venture.
The Board, having considered all aspects of the joint venture is of the opinion that the joint venture is in the best interest of Ekovest.
Ekovest will make an appropriate announcement to Bursa Malaysia as and when there is a material development in relation to the ROL Project.
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