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INTRODUCTION
The Board of Directors of Ekovest Berhad (“Ekovest” or “the Company”) wishes to announce that Milan Prestasi Sdn Bhd, a wholly owned subsidiary of Ekovest Land Sdn Bhd, which in-turn is a wholly owned subsidiary of Ekovest, had on 29 November 2010 entered into Sale & Purchase Agreements with Danga Bay Sdn Bhd (“vendor” or “the developer”) to acquire ten (10) bungalow lots from Danga Bay Sdn Bhd for a total purchase consideration of Ringgit Malaysia: Fifteen Million Three Hundred Fifty Six Thousand Four Hundred And Eighty Four Only (RM15,356,484.00).
INFORMATION REGARDING THE PROPERTIES
The 10 bungalow lots purchased by Milan Prestasi Sdn Bhd are all in the Bandar Johor Bahru, Daerah Johor Bahru, Negeri Johor:-
Lot No. PTB Land Area (sq. ft.) Price (RM)
2155 22725 8,156 1,394,676.00
2156 22726 7,000 1,197,000.00
2157 22727 8,775 1,500,525.00
2189 22728 10,156 1,736,676.00
2192 22719 8,000 1,368,000.00
2193 22718 8,000 1,368,000.00
2184 22681 9,000 1,539,000.00
2185 22682 11,513 1,968,723.00
2186 22683 10,204 1,744,884.00
2187 22684 9,000 1,539,000.00
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Total 15,356,484.00
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DETAILS OF THE VENDOR
Danga Bay Sdn Bhd
Company No. 428615-D
Registered Office:
1-2-1 Jalan 2/50, Diamond Square, Off Jalan Gombak, 53000 Kuala Lumpur
Directors:
Tuan Haji Johar Salim Bin Yahaya
Dato’ Lim Kang Hoo
Madam Lim Hoe
Mr. Lim Keng Cheng
Shareholders:
Danga Bay Holdings Sdn Bhd - 70%
Credence Resources Sdn Bhd - 30%
BASIS OF ARRIVING AT THE CONSIDERATION
The consideration sum was arrived after taking into the consideration of the 5% discount from the developer, Danga Bay Sdn Bhd’s selling price.
SOURCE OF FINANCING
The purchase consideration of RM15,356,484.00 will be funded from internally generated funds and/or financial institutions.
APPROVALS
The transaction does not require shareholders and/or governmental authorities approvals.
EFFECTS OF THE TRANSACTION
There is no effect of the transaction on the share capital, net tangible assets and gearing of Ekovest and no change of the substantial shareholders and their respective shareholdings.
RATIONALE FOR THE ACQUISITION
The acquisition is for the purpose of investment in a strategic location with potential for capital growth/development purpose.
The properties are located within a prime location within the Iskandar Development Region which is earmarked for development into an exclusive integrated waterfront city offering amongst others, upscale properties, top notch retail outlets, entertainment and leisure activities, an oasis for local and international food and beverage and top-draw events and activities in Johor Bahru City.
ENCUMBRANCES
The properties are free from encumbrances upon delivery of vacant possession.
RISK FACTORS
Property prices may be adversely affected by domestic economic conditions, local real estate conditions, public perception of the attractiveness of the property, changes from comparable sale and/or rental that may be generated. Other relevant factors also include changes in interest rates, availability of funds, changes in governmental regulations, changes in tax laws, environmental laws and other legal liabilities. Property investments are not liquid and limits the ability of converting the same to cash upon short notice, in which case a reduction in price may have to be endured for a quick sale.
The Company will mitigate the risk factors by constantly reviewing the economic conditions and changes in market demand. The Company does not at this point expect that a requirement for a quick sale on short notice will become necessary.
ESTIMATED TIME FRAME
The estimated time frame for completion is 36 months.
DIRECTORS AND SUBSTANTIAL SHAREHOLDERS’ INTEREST
Save and except for Dato’ Lim Kang Hoo who is deemed interested in the transaction by virtue of Dato’ Lim Kang Hoo being a Director and major shareholder of Danga Bay Sdn Bhd. Accordingly Dato’ Lim Kang Hoo make no opinion and recommendation and abstain from deliberation and voting in regards to the transaction.
STATEMENT OF DIRECTORS
The Board save and except for Dato’ Lim Kang Hoo after taking into consideration all the relevant factors and after careful deliberation is of the opinion that the acquisition is in the best interest of the Company and its shareholders.
COMMISSION’S POLICIES AND GUIDELINES
The transaction does not depart from the Commission’s policies and guidelines on issue/offer of securities.
DOCUMENTS FOR INSPECTION
The Sale & Purchase Agreements will be available for inspection at the registered address of the Company 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 Mondays to Fridays (except public holidays). |
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