Further to the announcement made to the Exchange on 8th June 2001, the company wishes to add on the following :-
1. The prospects of the Acquisition.
The priority of our government is in the provision of adequate, affordable and quality housing for all Malaysian. In this respect, majority of the WCSB's projects are focused on this sector. This acquisition will thus strengthen Merge Housing Group's position in the property industry.
2. Risk factors of the Acquisition includes :-
a] Certain inherent risks in the property industry, such as constraints in and the rising cost of labour supply and raw materials ;
b] Increasing competition from other property developers in view of the current property market ;
c] Adverse development in political and economic conditions in Malaysia could have unfavorable impact on the development of the project ;
d] Changes in government control and regulation.
3. The acquisition will be completed after obtaining shareholders approval. The estimated time frame for completion is approximately six months from date of agreement.
4. There is no liability assumed by Merge Housing Bhd pursuant to this Acquisition.
Query Letter Contents :
We refer to your announcement dated 8 June 2001 on the abovementioned matter.
In this connection, kindly furnish the Exchange with the following additional
information for public release:-
1) The prospects and risk factors of the Acquisition.
2) The estimated time frame for the completion of the Acquisition.
Kindly furnish the Exchange with your reply within two (2) market days from the