SEE HUP CONSOLIDATED BERHAD (“SEE HUP”) Investment In One Million (1,000,000) Redeemable Convertible Cumulative 5% Preference Shares In Kimsar Sdn. Bhd. (KIMSAR) For A Total Cash Consideration Of RM500,000.00
| SEE HUP CONSOLIDATED BERHAD |
|
Type | Reply to query |
| Reply to Query Letter by KLSE reference ID | PY-030710-35006 |
| Subject | SEE HUP CONSOLIDATED BERHAD (“SEE HUP”) Investment In One Million (1,000,000) Redeemable Convertible Cumulative 5% Preference Shares In Kimsar Sdn. Bhd. (KIMSAR) For A Total Cash Consideration Of RM500,000.00 |
Contents :
Further to our announcement on 8 July 2003 relating to the above matter, we wish to furnish herewith the following additional information as required in your letter dated 10 July 2003 :-
1. Based on the Audited Accounts for the financial year ended 31 December 2002, the Net Profit for the year amounted to RM770,910.00 and its NTA is 22.8 sen per ordinary share.
2. Information required in Appendix 10A Part C (4) of the Listing Requirements
a. Name of Project :
Taman Batu Maung on Lot 2034, Mukim 12 Daerah Barat Daya Pulau Pinang.
Type of Development : Residential
28 units double storey semi-detached house and 1 unit double storey bungalow.
b. Total development cost as at 31 December 2002 amounted to RM3,016,743.00.
c. Commencement date : August 2001
- Expected completion : October 2003
- d. Attributable profit recognized as at 31 December 2002 amounted to RM996,904.00.
e. Stage or percentage of completion :
- 80% completed for 10 units for the financial year ended 31 December 2002 and 90% completed for 29 units as at todate.
f. Sources of funds to finance the development cost :
- KIMSAR had obtained RM2.5 million bridging loan from Southern Bank Berhad, Komtar Branch, Penang.
3. As already mentioned in our announcement dated 8 July 2003, the cash consideration of RM500,000-00 was satisfied by cash sourced from internally generated funds.
4. i. Prospects factor of KIMSAR
- KIMSAR is a company involved in property development and is to a large extent dependent on the overall economy in the country.
- In an effort to further stimulate growth in the construction section, the Government had proposed that Real Property Gains Tax be exempted for a period of one year, effective from 1 June 2003 under the Economic Stimulus Package 2003 as unveiled by our Prime Minister, YAB Dato’ Seri Mahathir Mohamed recently.
- With the above additional incentive, KIMSAR is confident that it will be able to generate approximately RM8 million profit from the project undertaken.
- In addition, KIMSAR also guaranteed 5% dividend payment for 5 years from the said project.
ii. Risks factor of KIMSAR
- KIMSAR is subject to certain risks inherent in its property development sector. These risks include fluctuation in raw material cost, changes of government regulations on foreign labour supply and changes in general economic condition.
- Although KIMSAR seek to limit these risks, no assurance can be given that any changes to these factors will not have a material adverse effect on KIMSAR.
Further to the above, we wish to inform that the present issued and paid up share capital of KIMSAR are detailed below instead of RM20,247,996.00 as disclosed in our earlier announcement dated 8 July 2003 :-
Issued and Paid-up Share Capital of KIMSAR
(i) 1,828,647 ordinary shares @ RM1.00 each RM1,828,647.00
(ii) 3,722,190 ordinary shares @ RM0.40 each RM1,488,876.00
(iii) 3,946,134 preference shares @ RM0.50 each RM1,973,067.00
[(i)+(ii)+(iii) – cash allotment] RM 5,290,590.00
12,724,092 ordinary shares [otherwise than in cash] RM 5,762,135.40
Total RM11,052,725.40
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Yours faithfully
SEE HUP CONSOLIDATED BERHAD
SIGNED
________________________
DATO’ LEE HEAN GUAN
Group Managing Director
Query Letter Contents :
We refer to your announcement dated 8 July 2003 in respect of the aforesaid
matter.
In this connection, kindly furnish the Exchange with the following additional
information for public release :-
(1) Net profit and net tangible assets of KIMSAR based on its last audited
accounts.
(2) To include information as required in Appendix 10A Part C (4) of the
Listing Requirements.
(3) Source of funding for the cash consideration of RM500,000.
(4) The prospects and risk factors of KIMSAR.
Kindly furnish the Exchange with your reply within two (2) market days from the
date hereof.
Yours faithfully
TAN YEW ENG
Senior Manager, Listing Operations
LPY/zm
copy to :- Securities Commission (via fax)
Announcement Info
| Company Name | SEE HUP CONSOLIDATED BERHAD |
| Stock Name | SEEHUP |
| Date Announced | 14 Jul 2003 |
| Category | General Announcement |
| Reference No | CU-030714-61676 |
