Bursa Announcements

Date : 17 October 2000

PROPOSED JOINT VENTURE BETWEEN PPH PAPER PRODUCTS HOLDINGS SDN BHD ("PPH PP") WITH TECKWAH INDUSTRIAL CORPORATION LTD ("TICL") SINGAPORE TO VENTURE INTO SUPPLY CHAIN MANAGEMENT BUSINESS ("PROPOSED JOINT VENTURE")

PUBLIC PACKAGES HOLDINGS BHD

TypeReply to query
Reply to Query Letter by KLSE reference IDMN-001016-37843
SubjectPROPOSED JOINT VENTURE BETWEEN PPH PAPER PRODUCTS HOLDINGS SDN BHD ("PPH PP") WITH TECKWAH INDUSTRIAL CORPORATION LTD ("TICL") SINGAPORE TO VENTURE INTO SUPPLY CHAIN MANAGEMENT BUSINESS ("PROPOSED JOINT VENTURE")

Contents :

As requested vide your letter dated 16th October 2000, we furnish herewith the following information for your further action:-


1. PPH Printing & Packaging (Johor) Sdn Bhd ("PPH Johor") is involved in the manufacturing of offset printed display boxes, Gemstar Sdn Bhd is involved in property holding, Teckwah Paper Products Sdn Bhd ("TWPP") is involved in the manufacturing of paper products and importers and exporters of paper and paper products, Tompac Sdn Bhd ("Tompac") is involved in the manufacturing and selling of printed carton boxes and Teckwah Value Chain Sdn Bhd (formerly known as Techwave Media Services Sdn Bhd ) ("TVC") is dormant currently and will involve in Supply Chain Management Business pursuant to the proposed joint venture.

2. Net profits of PPH Johor, TWPP, Tompac and TVC based on their audited accounts for the financial year ended 31st December 1999 were RM 912,713, RM 3,160,872 RM 249,128 and nil respectively. TVC is dormant as at 31st December 1999.

3. Net tangible assets of TVC as at 31st December 1999 was RM 170,820

4. The persons connected with a director or substantial shareholder have no interest, direct or indirect, in the joint venture

5. The main features of the joint venture agreement have been disclosed in our announcement dated 12th October 2000. The document can be inspected at registered address of PPHB at Plot 67 Lintang Kampong Jawa Bayan Lepas Industrial Estate 11900 Bayan Lpeas Penang from 8.30 am to 5.30 pm

6. Particulars of all liabilities to be assumed by PTVC arising from the acquisitions as at 31st December 1999:-

ParticularsPPH JohorTWPPTompacTVC
CURRENT LIABILITIES
- Trade creditors
3,056,960
1,897,584
110,098
- Other creditors and accruals
849,900
1,802,561
83,831
- Long term loans - current portion
19,128
140,432
4,885
- Hire purchase and lease creditors- current portion
1,113,786
37,438
- Amount due to holding company
2,080,540
1,893,093
699,090
- Amount due to related companies
947,217
286,960
- Bank Borrowing
6,006,426
1,244,042
280,000
-Provision for taxation
83,472
78
Total
13,024,515
7,970,194
1,637,897
4,885
Long term liability
3,419,804
- Long term loans - net of current portion
103,698
215,802
- Hire purchase and lease creditors - non current portion
1,176,025
36,460
- Amount due to holding company
5,720,478

7. Original Cost of investment and the dates of such investments

CompanyCost of InvestmentsDate of Investments
PPH Johor

Total
6,475,000
3,243,712
9,718,712
27 October 1993
10 July 1997
TWPP

Total
2.00
1,000,001.50
1,000,003.50
19 February 1990
1 March 1990
Tompac

Total
2
499,998
500,000
6 February 1995
18 August 1995
TVC

Total
2
199,998
200,000
19 February 1992
30 July 1993

8. The expected losses to our group arising from the disposal of PPH Johor is RM 544,597 based on audited accounts for FYE 31st December 1999.

9. No term of arrangement for payment by PTVC on a deferred basis, in relation to the acquisitions of TWPP, Tompac and TVC respectively.

10. PTVC will derive its funds from subscription of 9,174,115 ordinary shares at the issue price of RM 1.00 each by Teckwah Industrial Corporation Ltd. for financing the acquisitions of TWPP, Tompac and TVC respectively

11. The joint venture is not subject to the approval of the shareholders as the percentage ratios do not exceed 25%.


Yours sincerely


Koay Chiew Kang
Executive Director

Query Letter Contents :

We refer to your Company's announcement dated 12 October 2000, in respect of
the aforesaid matter.
In this connection, kindly furnish the Exchange with the following additional
information for public release:-
(1) A description of the business carried on by PPH Printing & Packaging
(Johor) Sdn Bhd ("PPH Johor"), Gemstar Sdn Bhd., Techwah Paper Products Sdn Bhd
("TWPP"), Tompac Sdn Bhd ("Tompac") and Techwave Media Services Sdn Bhd ("TVC")
respectively.
(2) Net profits of PPH Johor, TWPP, Tompac and TVC based on their respective
latest audited accounts.
(3) Net tangible assets of TVC based on its latest audited accounts.
(4) Whether persons connected with a director or substantial shareholder have
any interest, direct or indirect, in the joint-venture, the nature of the
relationship with such director or substantial shareholder, and the name of the
connected person.
(5) Salient features of the joint-venture agreement and the time and place
where such document may be inspected.
(6) Particulars of all liabilities to be assumed by PPH Teckwah Value Chain
Sdn Bhd ("PTVC"), arising from the acquisitions of PPH Johor, TWPP, Tompac and
TVC.
(7) Original cost of investment in PPH Johor, TWPP, Tompac and TVC to the
respective vendors, and the dates of such investments.
(8) Expected gains or losses to your Group, arising from the disposal of PPH
Johor.
(9) Terms of any arrangement for payment by PTVC on a deferred basis, in
relation to the acquisitions of TWPP, Tompac and TVC respectively.



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(10) Source of funds to PTVC for financing the acquisitions of TWPP, Tompac and
TVC respectively.
(11) Whether the joint-venture is subject to the approval of shareholders.
Please furnish the Exchange with your reply within two (2) market days from the
date hereof.

Yours faithfully


TAN YEW ENG
Senior Manager, Listing Operations
TYE/LMN
Copy to: Securities Commission (via fax)



Announcement Info

Company NamePUBLIC PACKAGES HOLDINGS BHD  
Stock Name PPHB    
Date Announced17 Oct 2000  
CategoryGeneral Announcement
Reference NoPP-001017-52455

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