Announcements

Date : 16 August 2000

ARTICLE ENTITLED : "PPB sees stronger earnings in 2nd half" "PPB Group's stake sale in Tops not restricted to Royal Ahold"

PPB GROUP BERHAD

TypeReply to query
Reply to Query Letter by KLSE reference IDFM-000815-36827
SubjectARTICLE ENTITLED :
"PPB sees stronger earnings in 2nd half"
"PPB Group's stake sale in Tops not restricted to Royal Ahold"

Contents :

We refer to your query dated 15 August 2000 in respect of the above article appearing in The Star and Business Times on the same date and wish to clarify your underlined sentences as follows :-


The Star

1. As previously confirmed in our reply to KLSE dated 8 May 2000, our Group has intention to divest its remaining hotel interests comprising 20% interest in Tanjung Aru Hotel Sdn Bhd and 25% interest in Pantai Dalit Beach Resort Sdn Bhd. We will make an appropriate announcement to the KLSE once the terms and conditions for the divestment have been agreed upon.

2. In our 1999 Annual Report, under the Review of Business Activities, PPB had stated its intention to divest its interests in the retail business at an opportune time.

In line with the above, we confirm that PPB is in discussion to divest its 35% stake in RA-PPB (Tops) Retail Sdn Bhd to its joint venture partner, Royal Ahold. We will make an announcement to KLSE once an agreement has been reached.

3. We also confirm that PPB is negotiating with a local company to purchase the fixed assets and stocks of our wholly-owned subsidiary, Savers Retail Sdn Bhd, and to take over the stores presently occupied by Savers Retail. An announcement will be made to the KLSE upon execution of the relevant agreement.

4. PPB had on 12 May 2000 announced to the KLSE the signing of a Memorandum of Understanding with VMS Technology Sdn Bhd (VMS), under which both parties would enter into detailed negotiations with a view to PPB investing in VMS. Following further negotiations, PPB is considering the acquisition of a 10% equity interest in a company which will be the holding company of the VMS Group. The consideration is still under negotiation and is subject to completion of a due diligence audit. We will make an appropriate announcement to the KLSE when terms have been finalised.

Business Times

1. PPB is not reducing its involvement in cinema operations under its wholly owned subsidiary, PPB Leisure Holdings Sdn Bhd. The Group is presently rationalising its cinema operations through stringent cost cutting measures and focusing on cineplexes in major towns and cities instead of stand alone cinemas. It is also appealing to the Government to reduce the 30% entertainment tax on box office collections and to curb video piracy.

Query Letter Contents :

We refer to the above article appearing in The Star, Business Section ,page 3
and Business Times, Companies and Market Section, page 14, on Tuesday, 15
August 2000, a copy 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:-

The Star
"...the company intends to sell its 20% stake in Tanjung Aru Hotel Sdn Bhd and
a 25% interest in Pantai
Dalit Beach Resort Sdn Bhd, also to Shangri-La Asia."

"A proposed sale of its 35% stake in RA-PPB (Tops) Retail Sdn Bhd to PPB's
Dutch partner Royal
Ahold, which has pre-emptive rights, is still at negotiation stage."
"Its RM21mil investment in Savers Retail Sdn Bhd - an operator of departmental
and discount
stores- has not borne fruit and was in the process of being sold to a local
company."
"...it holds a 10% equity interest in VMS Technology (Singapore) Ltd, a
computer telephony integration
products maker."

Business Times
"Another operation that PPB plans to reduce its involvement is its loss-making
cinema operations under
whollyowned subsidiary PPB Leisure Holdings Sdn Bhd..."

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 article 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 article, 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 article, 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
date hereof.
Yours faithfully
KUALA LUMPUR STOCK EXCHANGE

Chong Fui Tzy
Manager, Listing Operations
ASL/TFM
cc:Securities Commission



Announcement Info

Company NamePPB GROUP BERHAD  
Stock Name PPB    
Date Announced16 Aug 2000  
CategoryGeneral Announcement
Reference NoPP-000816-58437

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