We refer to your fax on 11th June 2001, on the above-mentioned matter. This is to inform that we are not aware of any reasons for the usual market action on the share of our company.
However, we wish to point out that the company has on 31st May 2001 announced to the KLSE of its fourth quarter unaudited results and the proposed restructuring status which to certain extent is a positive development.
Our Chief Operating Officer has also elaborated the company's restructuring to the press last Friday, which was publicised in some local newspapers on Saturday. All the information revealed to the press were announced to the KLSE previosly.
Query Letter Contents :
We draw your attention to the sharp increase in price in your Company’s shares
In accordance with Section 338 of the Listing Requirements on the Corporate
Disclosure Policy on Response to Unusual Market Action, kindly advise the
Exchange immediately the following for public release upon due inquiry:-
1. whether there is any material development in your Company’s business and
affairs not previously disclosed.
2. whether there is any impending change in the major shareholders.
3. whether in your knowledge, any other reasons to account for the unusual
You are reminded that pursuant to Section 335 of the KLSE’s Listing
Requirements, the following situations/events (which are not exhaustive)
require prompt disclosure:
§ a joint venture, merger or acquisition;
§ the declaration or omission of dividends or the determination of earnings;
§ the acquisition or loss of a significant contract of franchise;
§ a change in control or a significant change in management;
§ a call of securities of redemption;
§ the borrowing of a significant amount of funds;
§ the public or private sale of significant amount of additional securities;
§ significant litigation;
§ the purchase or sale of a significant asset;
§ a significant change in capital investment plans;
§ a significant labour dispute or disputes with sub-contractors or suppliers;
§ a tender offer for another company’s securities;
§ an event of default on interest and/or principal payments in respect of
§ a proposed rights, bonus, loan stocks or special issues;
§ a proposed offer for sale of warrants or other securities.
In addition, any Memorandum of Understanding (MOU) entered into or to be
entered into pursuant to any significant business activity must be disclosed.
If the MOU is not intended to be a legally binding document at this stage, you
are required to disclose the expected time in which a legally binding
agreement will be executed by the relevant parties.
Kindly declare that none of the above listed situations/events contributed to
the unusual market action activities in your Company’s shares during the period
in question upon due inquiry.
You are also reminded that if you are aware or become aware of any rumour or
report (whether true or false) which contains information which is likely to
have an effect on the trading of your company’s securities, you are required
to publicly clarify the rumour or report as soon as possible.
Your reply should be in conformity with the Exchange’s Corporate Disclosure
Policy, in particular, Sections 336, 341 and 342 of the KLSE’s Listing
Requirements and is to reach the Exchange immediately today via KLSE Listing
Information Network (“KLSE LINK”).
TAN CHUN WENG
Senior Vice President
Financial Review & Surveillance