EKRAN BERHAD ("Ekran") - Settlement of Amount of RM712,939,000 by Tan Sri Dato’ Paduka (Dr) Ting Pek Khiing ("Tan Sri Ting") to Ekran - Proposed Revised Utilisation of Proceeds from Rights Issue
Further to the letter of the Kuala Lumpur Stock Exchange dated 2 November 2000, on behalf of the Board of Directors of Ekran, we wish to announce the following:
1. The delay in the finalisation of assets with a value of RM200 million for injection into Ekran by Tan Sri Ting was due to Tan Sri Ting not being able to dispose of his private investments for at least RM200 million to the original interested buyer.
The finalisation of assets with a value of RM200 million for injection into Ekran very much depends on the sale of Tan Sri Ting’s private investments as the proceeds therefrom would be utilised to settle the purchase consideration for the injection of assets into Ekran. Tan Sri Ting is now in negotiations with another party for the disposal of his private investments.
(i) Initial Cash Payment of RM50 million due on 31 July 2000
The initial cash payment of RM50 million due on 31 July 2000 has yet to be made. The Board of Directors of Ekran had passed a resolution on 21 August 2000 to grant Tan Sri Ting an extension of time until 30 September 2000 to make the aforesaid cash payment following Tan Sri Ting’s request on 25 July 2000 for more time to raise the money. Nevertheless, the cash payment is still outstanding and the said extension has since lapsed.
Tan Sri Ting has verbally informed the Board of Directors of Ekran that payment would be made within four (4) weeks from 6 November 2000.
Global Upline has requested for an extension to complete the proposed sale from 28 September 2000 to 31 January 2001. Global Upline and Tan Sri Ting are expected to sign a supplemental agreement to effect the said extension within the next week.
(iii) Payment of RM45 million from the proposed sale of Tan Sri Ting’s equity interest in Amal Bakti Sdn Bhd (“AASB”) to Kuala Lumpur City Corporation Berhad (“KLCCB”)
The proposed acquisition of AASB by KLCCB is pending the approval of the Ministry of Finance and KLCCB’s shareholders. The Foreign Investment Committee and the Securities Commission had approved the proposed acquisition of AASB on 8 September 2000 and 29 September 2000 respectively.
The set-off of the purchase consideration for the proposed acquisition of LMD is pending the approval by the Securities Commission for the proposed revised utilisation of proceeds from the rights issue, an application for which will be made by 31 January 2001, and the approval by the Foreign Investment Committee for the proposed acquisition of LMD.
YOON SWEE KONG JULIAN CHEAH
Acting Chief Executive Officer Senior Manager
c.c.: Securities Commission
- Attention: Mr Wong Wing Seong
Attention: Mr Peter Ling Ee Kong
Query Letter Contents :
We refer to your announcements dated 21 July 2000 and 30 October 2000.
In this connection, kindly furnish the Exchange with the following additional
information for public release:-
1) The reason for the delay in the finalisation of assets with a value of RM200
million to be
injected into Ekran by Tan Sri Ting and the status of the transaction
2) The reason for the delay in the preparation of the financial forecasts and
projections and the
3) The reason for the delay in updating the valuation reports in respect of the
said assets and
the status to-date;
4) An update on the status of all other transactions within the Proposed
announced on 21 July 2000, including the cash payment of RM50 million by 31
Kindly furnish the Exchange with your reply within two (2) market days from the
Copy to: Securities Commission (via fax)
|Company Name||EKRAN BERHAD|
|Date Announced||6 Nov 2000|