Announcements

Date : 11 March 2000

ACQUISITION OF VACANT LAND BY PROMPT CAPITAL SDN BHD

EKOVEST BERHAD

TypeReply to query
Reply to Query Letter by KLSE reference IDSB/72 (229)
SubjectACQUISITION OF VACANT LAND BY PROMPT CAPITAL SDN BHD

Contents :

We refer to the acquisition of a piece of vacant land by our wholly-owned subsidiary PROMPT CAPITAL SDN BHD [PCSB] and append herewith the additional details in accordance with Clause 5.4 of the Second Board Listing Requirement;


a. PCSB had signed a sale & purchase agreement for the acquisition of a parcel of vacant land in Cheras, held under H.S.(D) 40726 P.T.No. 1569 Mukim Kuala Lumpur, District of Kuala Lumpur and State of Wilayah Persekutuan measuring approximately 21,245.301 square metres (228,683 square feet). It is a 99 years leasehold land expiring on 7th February 2081

b. The vendor has submitted and obtained Dewan Bandaraya Kuala Lumpur's approval-in-principle for a mixed development comprising 1 block of 26 storey commercial complex with 2 storey basement, 8 storey podium and 5 blocks of 10 to 18 storeys condominiums but the approval has since lapsed.

c. The consideration of RM14.0 million is arrived at on a willing buyer, willing seller basis taking into account the market value of RM19.0 million by a firm of professional valuers. RM1,400,000 cash has been paid to the vendor and the balance of the purchase price of RM12,600,000 will have to be paid on or before 4 May 2000 or 1 month from the date of receipt by PCSB's solicitors of the FIC's approval whichever is later.

d. The net book value of the land to the vendor is RM10,064,000.

e. The 'percentage ratios' resulting from each of the following calculations are;
1. The value of the assets compared with the NTA of Ekovest: was 19.34%
2. The aggregate value of the consideration given compared with the NTA of Ekovest was 19.34%
3. The aggregate value of the consideration given compared with the market value of ordinary shares of Ekovest was 16.48%

f. There is no immediate effect of the acquisition on Ekovest's Earning Per Share, Net Tangible Assets per share, share capital and substantial shareholding, but the transaction is expected to contribute positively to the earnings of Ekovest in the near future.

g. None of the Directors, Substantial shareholders and persons connected with a Director or Substantial shareholder has any interest, direct or indirect in the above transaction.

h. The acquisition requires the approval of the FIC .

i. The rationale for the acquisition is to venture into property development.

j. There is no proposed director in connection with this acquisition

k. PCSB entered into a normal sales and purchase agreeement with the Vendor. The sale & purchase agreement together with the valuation report can be inspected at the Registered Address of Ekovest at 2nd floor, Wisma Ekovest, Jalan Desa Gombak 6, Taman Sri Setapak, 53000 Kuala Lumpur during office hours from 9.00 a.m. to 5.00 p.m. from Monday to Friday and from 9.00 a.m. to 1.00 p.m. on Saturday.

l. There is no additional liability to be assumed.

m. The original cost of investment to the vendor was RM10,064,000 and the date of such investment was on 27th January 1999.

n. All the Directors of Ekovest are of the opinion that the acquisition is in the best interest of Ekovest.

o. The vendor is MAXI LEGACY SDN BHD (co no. 258486-H) having its registered office at Lot 302, 3rd floor, Wisma Dijaya, No: 1A Jalan SS 20/1 Damansara Utama, 47400 Petaling Jaya, Selangor.

p. Ekovest will be using its own internal fund and/or bank loan for the acquisition

q. There is no proceeds arising from the transaction as it is not a disposal.

r. There is no expected gains or losses arising from the transaction as it is not a disposal.

s. The acquisition was agreed on 3rd February 2000 and the agreement was signed on the 4th February 2000.

t. The transaction does not involve any equity share capital.

u. Ekovest did not issue any equity share capital as consideration for the acquisition.



Announcement Info

Company NameEKOVEST BERHAD  
Stock Name EKOVEST    
Date Announced11 Mar 2000  
CategoryGeneral Announcement
Reference NoEE-000311-35646

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