EUROPLUS BERHAD ("EUROPLUS" OR "COMPANY")
|Type||Reply to query|
|Reply to Query Letter by KLSE reference ID||MJ-010621-55202|
EUROPLUS BERHAD ("EUROPLUS" OR "COMPANY")
Contents :We refer to the letter of the Kuala Lumpur Stock Exchange ("KLSE") dated 21 June 2001 ref. MJ-010621-55202.
On behalf of the Board of Europlus, Commerce International Merchant Bankers Berhad is pleased to detail below the reply of the Company to the queries raised by the KLSE:-
(i) With respect to the quote that Kumpulan Europlus Sdn. Bhd. ("Newco") would have an immediate turnover of about RM200 million upon completion of the rationalisation, the Company wishes to clarify that the estimated turnover is based on the turnover of the non-property businesses of Europlus and Talam Corporation Berhad ("Talam") to be transferred to Newco (as detailed in the announcement of the Company dated 15 June 2001).
The estimated turnover of RM200 million is expected to be derived primarily from the existing manufacturing businesses of Talam and Talam Builders Sdn. Bhd. ("Talam Builders"), which will undertake the construction of the main campus of Universiti Industri Selangor at Batang Berjuntai at an estimated construction value of approximately RM500 million over four (4) years ("UniSel Project"). Talam Builders will be transferred to Newco pursuant to the rationalisation exercise. In addition, upon completion of the rationalisation, Talam Builders will also be able to procure new contracts from the enlarged Talam group.
The UniSel Project was approved by the shareholders of Talam on 3 April 2001.
(ii) The Company wishes to confirm that the estimated turnover stated in (i) above does not include any turnover which might be derived by Newco from the West Coast Highway project.
(iii) The Company also wishes to confirm that Newco will have a 60% equity interest in Konsortium LPB Sdn. Bhd. ("KLPB") upon completion of the proposed rationalisation and merger exercise announced by the Company and Talam on 15 June 2001 ("Proposed Merger").
- Newco's 60.0% equity interest in KLPB is based on the proposed distribution of Europlus' 20% equity interest and Talam's 40% equity interest in KLPB to Newco pursuant to the Proposed Merger. KLPB has been identified to undertake the privatisation of the West Coast Highway project.
An announcement was made on the award of the privatisation of the West Coast Highway to KLPB on 23 August 1996.
(iv) With respect to the final quote in the KLSE's letter, the Company notes that the financial year end of Europlus is 31 March and that the earnings per share of Europlus based on its consolidated audited accounts for the financial year ended 31 March 2001 is 12.8 sen and not 31 January and 10.9 sen respectively as reported in The Sun.
Reference is drawn to paragraphs 1 and 2 of page 3 of the Business Section of The Star on Thursday, 21 June 2001 which correctly states that Talam's net earnings per share ("EPS") for the financial year ended 31 January 2001 is 12 sen. The article in The Star also highlights that Talam expects to settle its debts within five (5) years and in so doing, hopes to improve its net EPS to 25 sen upon the settlement of the debts.
- The statement in the first mentioned press article accordingly appears to have been inaccurately reported.
Query Letter Contents :
We refer to the above news articles appearing in the The Star, Business Section
and The Sun, SunBiz on Thursday, 21 June 2001, a copy each of which is enclosed
for your reference.
In particular, we would like to draw your attention to the underlined sentences
which are reproduced as follows:-
" ......upon completion of the rationalisation, Kumpulan Europlus would
have an immediate turnover of about RM200mil."
" The estimated RM200mil turnover for Kumpulan Europlus excludes the potential
business from our proposed RM4bil West Coast Highway project.... "
" Kumpulan Europlus will have a 60% stake in the proposed 260 km highway
linking Banting to Taiping."
"....the earnings per share of Kumpulan Europlus is expected to be about 25
sen, higher than Europlus's earnings per share of 10.9 sen as at Jan 31, 2001."
In accordance with the Exchange's Corporate Disclosure Policy, you are
requested to furnish the Exchange with an announcement for public release
confirming or denying the above reported articles and in particular the
underlined sentences after due and diligent enquiry with all the directors,
substantial shareholders and all such other persons reasonably familiar with
the matters about which the disclosure is to be made in this respect. In the
event you deny the above sentences or any other part of the above reported
articles, you are required to set forth facts sufficient to clarify any
misleading aspects of the same. In the event you confirm the above sentences or
any other part of the above reported articles, you are required to set forth
facts sufficient to support the same.
Please furnish the Exchange with your reply within one (1) market day from the
Copy to: Securities Commission (via fax)
|Company Name||EUROPLUS BERHAD|
|Date Announced||22 Jun 2001|