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We refer to your letter dated 10 March, 2000 pertaining to the subject-captioned and would inform that the Company is in the advance stage of negotiation with Pernas International Holdings Berhad ("Pernas") for the proposed acquisition from Pernas of 60,548,526 ordinary shares of RM1.00 each representing approximately 30.03% of the issued and paid-up share capital of Malayawata Steel Bhd ("Proposed Acquisition").
Full details of the Proposed Acquisition will be announced to the Exchange on Monday, 13 March, 2000 after trading hours.
Save as disclosed above, we have no knowledge of any other reasons to account for the unusual market action.
Yours faithfully
LIM KIAM LAM
Group Managing Director
