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TOP FORM INT Announcement Resumption of Trading

VIEWS: 14 PAGES: 25

									T h e St o c k E x c h a n g e o f H o n g K o n g L i m i t e d t a k e s n o re s p o n s i b i l it y f o r t h e
c o n t e n t s o f t hi s a n n o u n c e m e n t , m a k e s n o re p re s e n t a t i o n a s t o it s a c c u r a c y o r
completeness and expressly discla ims any liability whatsoever for any loss
h o ws o e v e r a r i s i n g f ro m o r i n re l i a n c e u p o n t h e w h ol e o r a n y p a r t of t h e
contents of this announcement.


          G uli ano P te Li mi te d                                             Van De Ve l de N. V.
    (Incorporated in Singapore with limited liability)                (Incorporated in Belgium with limited liability)




                               Top F or m Inte r nati onal Li mi te d
                         (Incorporated in Bermuda with limited liability)


                                 JO INT ANN O UNCEM ENT

 C o n d i t i o n a l c a s h o f f e r b y I N G B a n k N . V. o n b e h a l f o f G u l i a n o P t e L i m i t e d ,
  Va n D e Ve l d e N . V. , M r. Wo n g C h u n g C h o n g , E d d i e a n d M r. F u n g Wa i Y i u
   jointly to acquire all the issued shares of HK$0.10 e ach and outstanding
  c o n v e r t i b l e l o a n n o t e s o f To p F o r m I n t e r n a t i o n a l L i m i t e d o t h e r t h a n t h o s e
a l r e a d y h e l d o r a g r e e d t o b e h e l d b y G u l i a n o P t e L i m i t e d , Va n D e Ve l d e N . V. ,
    M r. Wo n g C h u n g C h o n g , E d d i e a n d M r. F u n g Wa i Y i u o r p a r t i e s a c t i n g i n
                                             concert with any of them


                                        Financial adviser to
                                 To p F o r m I n t e r n a t i o n a l L i m i t e d




                                                               1
                                                                            Top Form International Limited - ANNOUNCEMENT
                                                                                               Hong Kong, 11th December, 2001
T h e C o m p a n y w a s n o t i f i e d b y Va n D e Ve l d e t h a t o n 3 r d D e c e m b e r , 2 0 0 1 ,
Va n D e Ve l d e h a d s e r v e d a n o t i c e t o M r. L o a n d P D S L i m i t e d t o e x e r c i s e
the option granted pursuant to the Call Option Ag reement. Completion of
the sale and purchase of the Shares under the Call Option Agreement took
p l a c e o n 6 t h D e c e m b e r, 2 0 0 1 . F o l l o w i n g c o m p l e t i o n o f t h e C a l l O p t i o n
A g r e e m e n t , Va n D e Ve l d e , M r. Wo n g , M r. F u n g a n d p a r t i e s a c t i n g i n
concert with them held 49.96 per cent. in the issued Shares and thereby
t r i g g e r e d a m a n d a t o r y g e n e r a l o f f e r u n d e r R u l e 2 6 . 1 o f t h e Ta k e o v e r s C o d e .

Va n D e Ve l d e h a s n o m i n a t e d G u l i a n o , a S i n g a p o r e a n c o m p a n y a n d c u r r e n t l y
a w h o l l y - o w n e d s u b s i d i a r y o f Va n D e Ve l d e , t o a c t a s i t s n o m i n e e a n d t o
hold the Sale Shares transferred to it.

P u r s u a n t t o t h e S u b s c r i p t i o n A g r e e m e n t , M r. Wo n g a n d M r. F u n g w i l l
transfer or procure the transfer of 141,864,380 and 66,700,000 Shares
(representing approximately 19.28 per cent. and 9.07 per cent. resp ectively
of the existing issued Shares) to Guliano respectively as consideration for
t h e a l l o t m e n t t o M r. Wo n g a n d M r. F u n g o f 3 4 , 0 1 0 a n d 1 5 , 9 9 1 s h a r e s i n
G u l i a n o r e s p e c t i v e l y. O n c o m p l e t i o n o f t h e C a l l O p t i o n A g r e e m e n t w h i c h
t o o k p l a c e o n 6 t h D e c e m b e r , 2 0 0 1 , Va n D e Ve l d e d i r e c t e d t h e t r a n s f e r o f
1 5 8 , 7 1 2 , 3 6 2 S h a r e s ( t h e S h a r e s a c q u i r e d f r o m M r. L o a n d P D S L i m i t e d
pursuant to the exercise of the option granted under the Call Option
A g r e e m e n t ) t o G u l i a n o . A s a t t h e d a t e o f t h i s a n n o u n c e m e n t , Va n D e Ve l d e ,
M r. Wo n g a n d M r. F u n g ( i n c l u d i n g i n t e r e s t s h e l d b y t h e i r r e s p e c t i v e
associates) were interested as to 21.58 per cent., 19.28 per cent. and 9.10
per cent. respectively of the issued Shares.

O n c o m p l e t i o n o f t h e S u b s c r i p t i o n A g r e e m e n t , Va n D e Ve l d e w i l l m a k e a
cash contribution of HK$8,164,394 to Guliano. The cash consideration,
together with 158,712,362 Shares that were transferred to Guliano on 6th
D e c e m b e r, 2 0 0 1 u p o n c o m p l e t i o n o f t h e C a l l O p t i o n A g r e e m e n t , w i l l b e
u s e d a s c o n s i d e r a t i o n f o r t h e a l l o t m e n t t o Va n D e Ve l d e o f 4 9 , 8 9 9 s h a r e s i n
G u l i a n o ( t o g e t h e r w i t h Va n D e Ve l d e ' s e x i s t i n g s h a r e h o l d i n g i n G u l i a n o o f
100 shares representing 49.999 per cent. of the share capital of Guliano).

S i n c e M r. F u n g h a s n o m i n a t e d t h e a l l o t m e n t o f 6 , 4 0 1 s h a r e s i n G u l i a n o t o
M r. Wo n g , o n c o m p l e t i o n o f t h e S u b s c r i p t i o n A g r e e m e n t , Va n D e Ve l d e , M r.
Wo n g a n d M r. F u n g w i l l b e i n t e r e s t e d i n 4 9 . 9 9 9 p e r c e n t . , 4 0 . 4 1 1 p e r c e n t .
and 9.590 per cent., respectively of the issued shares of Guliano. Guliano
will in turn own approximately 49 .93 per cent. of the issued Shares. The
remaining 0.03 per cent., consisting of 216,000 Shares, is held by Mrs.
F u n g Ya u H a n , E l i s a , s p o u s e o f M r. F u n g .

I N G B a n k N . V. h a s b e e n a p p o i n t e d b y Va n D e Ve l d e t o m a k e a n o f f e r , o n
b e h a l f o f G u l i a n o , Va n D e Ve l d e , M r. Wo n g a n d M r. F u n g , t o a c q u i r e a l l t h e
i s s u e d S h a r e s a t H K $ 0 . 1 6 3 8 p e r O f f e r S h a r e p u r s u a n t t o t h e Ta k e o v e r s
Code and to make an appropriate offer to the holders of the Offer
Convertible Loan Notes in compliance with the requirements under Rules
1 3 . 1 o f t h e Ta k e o v e r s C o d e . T h e p r i c e o f H K $ 0 . 1 6 3 8 p e r O f f e r S h a r e
                                                              2
                                                                           Top Form International Limited - ANNOUNCEMENT
                                                                                              Hong Kong, 11th December, 2001
     represents a discount of approximately 18.10 per cent. to the closing price
     o f H K $ 0 . 2 0 p e r S h a r e a s q u o t e d o n t h e St o c k E x c h a n g e o n 3 r d D e c e m b e r,
     2001, being the last full trading day before suspe nsion of trading of Shares
     o n t h e St o c k E x c h a n g e a s f r o m 1 0 : 0 0 a . m . o n 4 t h D e c e m b e r, 2 0 0 1 .

     Shareholders are advised to exercise caution in dealing in the securities
     o f t h e C o m p a n y. T h e O f f e r i s s u b j e c t t o G u l i a n o , Va n D e Ve l d e , M r.
     Wo n g , M r. F u n g a n d p a r t i e s a c t i n g i n c o n c e r t w i t h a n y o f t h e m
     collectively being able to acquire more than 50 per cent. of the issued
     Shares.

     A t t h e r e q u e s t o f t h e C o m p a n y, t r a d i n g o f t h e S h a r e s w a s s u s p e n d e d f r o m
     1 0 : 0 0 a . m . o n 4 t h D e c e m b e r, 2 0 0 1 a n d i s ex p e c t e d t o r e s u m e w i t h e ff e c t
     f r o m 1 0 : 0 0 a . m . o n 1 2 t h D e c e m b e r, 2 0 0 1 f o l l o w i n g t h e p u b l i c a t i o n o f t h i s
     announcement.



I.      INTRODUCTION

        T h e C o m p a n y w a s n o t i f i e d b y Va n D e Ve l d e t h a t o n 3 r d D e c e m b e r , 2 0 0 1 ,
        Va n D e Ve l d e h a d s e r v e d a n o t i c e t o M r L o a n d P D S L i m i t e d t o e x e r c i s e t h e
        o p t i o n g r a n t e d p u r s u a n t t o t h e C a l l O p t i o n A g r e e m e n t d a t e d 3 r d O c t o b e r,
        2 0 0 1 e n t e r e d i n t o b e t w e e n M r. L o , a f o r m e r D i r e c t o r a n d c o - f o u n d e r o f t h e
        C o m p a n y, a n d P D S L i m i t e d ( t h e t r u s t e e o f a u n i t t r u s t i n w h i c h M r. L o i s
        a n e l i g i b l e b e n e f i c i a r y ) a s t h e Ve n d o r s a n d Va n D e Ve l d e a s t h e p u r c h a s e r
        w h e r e b y Va n D e Ve l d e p u r c h a s e d 4 5 , 5 0 0 , 0 0 0 S h a r e s a n d 1 1 3 , 2 1 2 , 3 6 2 S h a r e s
        f r o m M r. L o a n d P D S L i m i t e d r e s p e c t i v e l y ( r e p r e s e n t i n g a p p r o x i m a t e l y
        6.19 per cent. and 15.39 per cent. of the issued Shares) for a total
        c o n s i d e r a t i o n o f H K $ 2 6 . 0 m i l l i o n . Va n D e Ve l d e h a s n o m i n a t e d G u l i a n o , a
        S i n g a p o r e a n c o m p a n y a n d c u r r e n t l y a w h o l l y - o w n e d s u b s i d i a r y o f Va n D e
        Ve l d e , t o a c t a s i t s n o m i n e e a n d t o h o l d t h e S a l e S h a r e s t r a n s f e r r e d t o i t .


        G u l i a n o , Va n D e Ve l d e , M r. Wo n g a n d M r. F u n g h a v e a l s o e n t e r e d i n t o t h e
        S u b s c r i p t i o n A g r e e m e n t o n 3 0 t h N o v e m b e r , 2 0 0 1 , p u r s u a n t t o w h i c h M r.
        Wo n g a n d M r. F u n g w i l l t r a n s f e r o r p r o c u r e t h e t r a n s f e r o f 1 4 1 , 8 6 4 , 3 8 0
        Shares and 66,700,000 Shares respectively (representing approximately
        19.28 per cent. and 9.07 per cent. respectively of the issued Shares) to
        G u l i a n o a s c o n s i d e r a t i o n f o r t h e a l l o t m e n t t o M r. Wo n g a n d M r. F u n g o f
        34,010 and 15,991 shares in Guliano respectively (representing 34.010 per
        c e n t . a n d 1 5 . 9 9 1 p e r c e n t . o f t h e s h a r e c a p i t a l o f G u l i a n o ) . M r. F u n g h a s
        nominated the allotment of 6,401 shares in Guliano representing 6.401 per
        c e n t . i n G u l i a n o t o M r. Wo n g ( t h e " G u l i a n o S h a r e T r a n s f e r " ) . T h e

                                                                   3
                                                                                Top Form International Limited - ANNOUNCEMENT
                                                                                                   Hong Kong, 11th December, 2001
   consideration of the Guliano Shar e Transfer is HK $4,373,460 which is
   based on the value of Guliano (i.e. HK$68,324,324) which is in turn
   determined with reference to the cash amount of HK$8,164,394 and the
   367,276,742 Shares at HK$0.1638 per Share held by Guliano. On
   completion of the Call Option Agreement which took place on 6th
   D e c e m b e r , 2 0 0 1 , Va n D e Ve l d e d i r e c t e d t h e t r a n s f e r o f 1 5 8 , 7 1 2 , 3 6 2 S h a r e s
   ( t h e S h a r e s a c q u i r e d f r o m M r. L o a n d P D S L i m i t e d p u r s u a n t t o t h e e x e r c i s e
   of the option granted under the Call Option Agreement) to Guliano. On
   c o m p l e t i o n o f t h e S u b s c r i p t i o n A g r e e m e n t , Va n D e Ve l d e w i l l m a k e a c a s h
   contribution of HK$8,164,394 to Guliano. The cash contribution, together
   with 158,712,362 Shares that have already been transferred to Guliano on
   6 t h D e c e m b e r, 2 0 0 1 a t c o m p l e t i o n o f t h e C a l l O p t i o n A g r e e m e n t , w i l l b e
   u s e d a s c o n s i d e r a t i o n f o r t h e a l l o t m e n t t o Va n D e Ve l d e o f 4 9 , 8 9 9 s h a r e s i n
   G u l i a n o ( t o g e t h e r w i t h Va n D e Ve l d e ' s e x i s t i n g s h a r e h o l d i n g i n G u l i a n o o f
   100 shares representing 49.999 per cent. of the share capital of Guliano).
   F o l l o w i n g c o m p l e t i o n o f t h e C a l l O p t i o n A g r e e m e n t o n 6 t h D e c e m b e r, 2 0 0 1 ,
   Guliano holds approximately 21.58 per cent. of the issued Shares and upon
   completion of the Subscription Agreement, Guliano alone and together with
   parties acting in concert with it, will hold approximately 49.93 per cent.
   a n d 4 9 . 9 6 p e r c e n t . o f t h e i s s u e d S h a r e s r e s p e c t i v e l y. A f t e r c o m p l e t i o n o f
   the Subscription Agr eement and th e Guliano Share Transfer (as d efine d in
   this paragraph), the share capital of Guliano will be held as to 49.999 per
   c e n t . b y Va n D e Ve l d e , 4 0 . 4 1 1 p e r c e n t . b y M r. Wo n g a n d 9 . 5 9 0 p e r c e n t . b y
   M r. F u n g . A s a r e s u l t o f c o m p l e t i o n o f t h e C a l l O p t i o n A g r e e m e n t , a
   m a n d a t o r y g e n e r a l o f f e r b y G u l i a n o , Va n D e Ve l d e , M r. Wo n g a n d M r. F u n g
   i s t r i g g e r e d p u r s u a n t t o R u l e 2 6 . 1 o f t h e Ta k e o v e r s C o d e f o r a l l t h e i s s u e d
   Shares and outstanding Convertible Loan Notes other than those held or
   a g r e e d t o b e h e l d b y G u l i a n o , Va n D e Ve l d e , M r. Wo n g , M r. F u n g a n d
   parties acting in concert with any of them.


II. THE CALL OPTION AGREEMENT

   1.     Date of Agreement:                 3 r d O c t o b e r, 2 0 0 1


   2.     Ve n d o r s :                     (i)     M r. L o
                                             (ii) PDS Limited


   3.     Purchaser:                         Va n D e Ve l d e o r i t s n o m i n e e

                                                             4
                                                                            Top Form International Limited - ANNOUNCEMENT
                                                                                               Hong Kong, 11th December, 2001
   4.     No. of Shares:                     158,712,362 Shares (21.58                         per     cent.      of     the
                                             existing issued Shares)


   5.     Option Price:                      HK$26,000,000 (or equivalent to approximately
                                             HK$0.1638 per option to acquire one Share)


   6.     Option Fee:                        H K $ 1 3 0 , 0 0 0 ( i f Va n D e Ve l d e e x e r c i s e s t h e
                                             option, the Option Fee shall be applied as and
                                             considered to be part payment of the Option
                                             Price)


   7.     Option Period:                     F r o m 3 r d O c t o b e r, 2 0 0 1 a n d ex p i r e d o n ( a n d
                                             i n c l u d i n g ) 3 r d D e c e m b e r, 2 0 0 1
   8.     Exercise Date:                     Va n D e Ve l d e e x e r c i s e d t h e o p t i o n o n 3 r d
                                             D e c e m b e r, 2 0 0 1


III. THE CONDITIONAL CASH OFFER

   On completion of the Call Option Agreement and the Subscription
   Agreement, and based on the number of issued Shares as at the date of this
   announcement, Guliano and its concert parties will hold approximately
   4 9 . 9 6 p e r c e n t . o f t h e i s s u e d S h a r e s . I N G B a n k N . V. h a s b e e n a p p o i n t e d b y
   Va n D e Ve l d e , o n b e h a l f o f G u l i a n o , Va n D e Ve l d e , M r . Wo n g a n d M r. F u n g ,
   to jointly and severally make a conditional cas h offer to acquire all the
   i s s u e d S h a r e s p u r s u a n t t o t h e Ta k e o v e r s C o d e a n d t o m a k e a n a p p r o p r i a t e
   offer to the holders of the Offer Convertible Loan Notes in compliance with
   t h e r e q u i r e m e n t s u n d e r R u l e 1 3 . 1 o f t h e Ta k e o v e r s C o d e . T h e p r i c e o f t h e
   offer for the Offer Shares is as follows:


   For each Offer Share:                 HK$0.1638 in cash


   T h e o f f e r f o r t h e O f f e r S h a r e s i s c o n d i t i o n a l u p o n G u l i a n o , Va n D e Ve l d e ,
   M r. Wo n g , M r. F u n g a n d p a r t i e s a c t i n g i n c o n c e r t w i t h a n y o f t h e m
   receiving acceptances in respect of voti ng rights which together with
   v o t i n g r i g h t s a c q u i r e d o r a g r e e d t o b e a c q u i r e d b e f o r e o r d u r i n g t h e O ff e r,
   w h i c h w i l l r e s u l t i n G u l i a n o , Va n D e Ve l d e , M r. Wo n g a n d M r. F u n g a n d
   parties acting in concert with any of them holding more than 50 per cent.
   of the voting rights.

                                                             5
                                                                          Top Form International Limited - ANNOUNCEMENT
                                                                                             Hong Kong, 11th December, 2001
The price of HK$0.1638 for each Offer Share is equivalent to the purchase
p r i c e f o r e a c h S h a r e p a i d b y Va n D e Ve l d e u n d e r t h e o p t i o n g r a n t e d
pursuant to the Call Option Agreement.


Wi t h t h e i n t e n t i o n t h a t G u l i a n o w i l l h o l d a 5 1 p e r c e n t . i n t e r e s t i n t h e
C o m p a n y, u p t o a p p r o x i m a t e l y 7 , 8 8 3 , 7 1 8 O f f e r S h a r e s ( r e p r e s e n t i n g
approximately 1.07 per cent. of the issued Shares) accepted under the Offer
w i l l f i r s t l y b e h e l d b y G u l i a n o w i t h t h e r e m a i n i n g O f f e r S h a r e s , i f a n y,
a c c e p t e d u n d e r t h e O f f e r t o b e h e l d b y Va n D e Ve l d e .


A s m e n t i o n e d e a r l i e r, a n a p p r o p r i a t e o ff e r f o r t h e h o l d e r s o f t h e O ff e r
C o n v e r t i b l e L o a n N o t e s w i l l a l s o b e m a d e b y I N G B a n k N . V. o n b e h a l f o f
G u l i a n o , Va n D e Ve l d e , M r. Wo n g a n d M r. F u n g . T h e E x e c u t i v e i s b e i n g
consulted in res pect of the appropriate terms of the offer for the Offer
Convertible Loan Notes and a further announcement will be made as soon
as practicable upon determination of such terms.


Under the agreement in respect of the Convertible Loan Notes, Convertible
Loan Note holders who wish to participate in the offer for the Offer
Convertible Loan Notes are required to comply with certain pre -emption
process. Such process involves various rounds, starting with a right of first
r e f u s a l e x e r c i s a b l e b y M r. Wo n g a n d M r. F u n g , f o l l o w e d b y r i g h t s o f f i r s t
r e f u s a l e x e r c i s a b l e b y t h e o t h e r C o n v e r t i b l e L o a n N o t e h o l d e r s . M r. Wo n g ,
M r. F u n g a n d Va n D e Ve l d e h a v e u n d e r t a k e n t o t h e C o m p a n y t h a t e a c h o f
them will waive and will not exercise his or its rights of first refusal on
the Offer Convertible Loan Notes from the da y of this announcement to the
c l o s i n g d a y o f t h e O f f e r. T h i s u n d e r t a k i n g w i l l l a p s e i n t h e e v e n t t h a t t h e
Offer fails to be declared unconditional after the first closing da y of the
O f f e r.


The offer to acquire the O ffer Convertible Loan Notes is conditional on the
offer to acquire the Offer Shares becoming unconditional.


A s a t t h e d a t e o f t h i s a n n o u n c e m e n t , Va n D e Ve l d e h o l d s U S $ 1 , 0 0 0 , 0 0 0 o f
t h e o u t s t a n d i n g C o n v e r t i b l e L o a n N o t e s , w h i c h , i f f u l l y c o n v e r t e d t o d a y,
will result in the issuance of an additional 24,937,655 Shares (3.39 per
cent. of the existing issued Shares).


The Offer Convertible Loan Notes are currentl y held by Bestform, Inc. and
                                                          6
                                                                       Top Form International Limited - ANNOUNCEMENT
                                                                                          Hong Kong, 11th December, 2001
a n o t h e r n o t e h o l d e r a s t o U S $ 3 , 5 0 0 , 0 0 0 a n d U S $ 11 , 0 0 0 , 0 0 0 r e s p e c t i v e l y
( t h e " O t h e r N o t e H o l d e r s " ) . Va n D e Ve l d e , G u l i a n o , M r. Wo n g a n d M r F u n g
do not consider themselves to be acting in concert with either of the Other
N o t e H o l d e r s . To t h e b e s t k n o w l e d g e o f t h e C o m p a n y, B e s t f o r m , I n c . i s
currently a shareholder of the Company ho lding less than 10 per cent. of
the issued Shares.


It is intended that all Offer Convertible Loan Notes accepted under the
O f f e r w i l l b e h e l d b y Va n D e Ve l d e .


The Offer values all the Offer Shares at approximately HK$60.3 million.


I N G B a n k N . V. h a s c o n f i r m e d t h a t i t i s s a t i s f i e d t h a t Va n D e Ve l d e ,
G u l i a n o , M r. Wo n g a n d M r. F u n g h a v e s u f f i c i e n t f i n a n c i a l r e s o u r c e s t o
satisfy full acceptances of the offer for the Offer Shares.


Save as disclosed above, the Company does not have any other outstanding
equity securities (including equity related convertible securities, warrants,
options or subscription rights in respect of any equity share capital).


Wa r n i n g : S h a r e h o l d e r s a r e a d v i s e d t o e x e r c i s e c a u t i o n i n d e a l i n g i n t h e
s e c u r i t i e s o f t h e C o m p a n y. T h e O f f e r i s c o n d i t i o n a l u p o n G u l i a n o , Va n
D e Ve l d e , M r. Wo n g a n d M r. F u n g c o l l e c t i v e l y b e i n g a b l e t o a c q u i r e
a b o v e 5 0 p e r c e n t . o f t h e i s s u e d S h a r e s p u r s u a n t t o t h e Ta k e o v e r s C o d e .
The Company does not express any view on the terms or the
a p p r o p r i a t e n e s s o f t h e O f f e r.

Save for the Shares acquired pursuant to the exercise of the option granted
under the Call Option Agreement and the US$1,000,000 outstanding
C o n v e r t i b l e L o a n N o t e s , Va n D e Ve l d e d o e s n o t o w n a n y o t h e r S h a r e s o r
Convertible Loan Notes nor has it dealt in the Shares or Convertible Loan
Notes in the six months preceding the date of this announcement.


Save for the 216,000 Shares held by Mrs. Fung, the Subscription Agreement
a n d t h e G u l i a n o S h a r e T r a n s f e r , n e i t h e r M r. Wo n g , M r. F u n g o r t h e i r
respective associates owns any other Shares or Convertible Loan Notes, nor
has any of them dealt in the Shares or Convertible Loan Notes in the six
months preceding the date of this announcement.

                                                        7
                                                                     Top Form International Limited - ANNOUNCEMENT
                                                                                        Hong Kong, 11th December, 2001
St a m p D u t y

Seller's ad valorem stamp duty at the rate of HK$1.00 for every HK$1,000
or part thereof of the consideration will be deducted from the consideration
payable to the Shareholders and Convertible Loan Note holders (unless
such ad valorem stamp duty is not required under the Hong Kong Stamp
Duty Ordinance), who accept th e relevant offer for the Offer Shares and the
Offer Convertible Loan Notes.


Effect of Accepting the Offer

B y a c c e p t i n g t h e O ff e r, S h a r e h o l d e r s o r C o n v e r t i b l e L o a n N o t e h o l d e r s w i l l
sell their Offer Shares or Offer Convertible Loan Notes free from all lie ns,
claims, encumbrances, rights of first refusal or pre -emption rights of any
third parties and with all rights attached, including the right to receive all
dividends and distributions declared and interest (as the case may be),
made or paid after the lat er of (i) the Offer being declared unconditional;
a n d ( i i ) t h e i r a c c e p t a n c e o f t h e O f f e r.


I N T E N T I O N O F G U L I A N O A N D VA N D E V E L D E I N R E L AT I O N T O T H E
C O M PA N Y

T h e d i r e c t o r s o f Va n D e Ve l d e , M r. Wo n g a n d M r. F u n g b e l i e v e t h a t t h e
formation of Guliano to hold the Shares pursuant to the Subscription
A g r e e m e n t , w i l l h e l p t o c r e a t e s t a b i l i t y i n t h e s h a r e h o l d i n g o f t h e C o m p a n y.
Further details about the background of Guliano are set out in the
p a r a g r a p h s h e a d e d " T h e S u b s c r i p t i o n A g r e e m e n t " a n d " T h e J o i n t Ve n t u r e
A g r e e m e n t " b e l o w. G u l i a n o d o e s n o t i n t e n d t o i n s t i t u t e a n y c h a n g e i n
management and intends that the existing management team of the Company
should continue to operate and manage the day-to-day business of the
C o m p a n y, a l t h o u g h Va n D e Ve l d e , t h r o u g h G u l i a n o , m a y p r o p o s e t o t h e
Board to nominate a minimum of two directors to the Board after
c o m p l e t i o n o f t h e O f f e r. W i t h t h e s t a b l e s h a r e h o l d i n g , G u l i a n o b e l i e v e s
that the Company can then formulate more focused long -term strategies and
business plans. It is the intention of the shareholders of Guliano to propose
t o t h e C o m p a n y, w i t h t h e c o n s e n t o f t h e C o m p a n y a n d s u b j e c t t o a l l
necessary approvals, to seek the requisite financing to settle the
Convertible Loan Notes, upon receipt of a demand notice in accordance
with the terms and conditions of the Convertible Loan Notes, by a
                                                            8
                                                                         Top Form International Limited - ANNOUNCEMENT
                                                                                            Hong Kong, 11th December, 2001
combination of banking borrowings and shareholder's loan from Guliano.
The Company will study the financial implications in relation to the
aforesaid and currently expresses no view on the v iability or desirability of
any such financing proposal.


C H A N G E O F D I R E C T O R S O F T H E C O M PA N Y

It is expected that all the existing Directors will remain on the Board until
and subsequent to the closing date of the Offer and following the closing of
t h e O f f e r , Va n D e Ve l d e , t h r o u g h G u l i a n o , m a y p r o p o s e t o t h e B o a r d t o
nominate a minimum of two additional Directors to the Board. It is the
intention of Guliano that there will be no material change in the existing
m a n a g e m e n t a n d e m p l o y e e s o f t h e G r o u p b y r e a s o n o n l y o f t h e O f f e r.


M A I N TA I N I N G T H E L I S T I N G S TAT U S O F T H E C O M PA N Y

Guliano has no intention to exercise the power of compulsory acquisition.
It intends to maintain the listing of the Shares on the Stock Exchange.
Guliano has confirmed with the Stock Excha nge that so long as they do not
exercise the right of compulsory acquisition, they will use all reasonable
endeavours, if and as appropriate, to ensure that not less than 25 per cent.
of the issued Shares will be held by the public following the close of t he
Offer within a reasonable time.


The Stock Exchange has indicated that it will closely monitor trading in the
S hares i f, at t he cl ose of t he Offer, l ess t han 25 per cent . of t he i ssued
Shares are held by the public.


If the Stock Exchange believes that:


-     a false market exists or may exist in the Shares; or


-     there are too few Shares in public hands to maintain an orderly
      market,


then it will consider exercising its discretion to suspend trading in the
Shares.


The Stock Exchange has further stated th at, if the Company remains listed
                                                    9
                                                                Top Form International Limited - ANNOUNCEMENT
                                                                                   Hong Kong, 11th December, 2001
on the Stock Exchange, any asset disposals or asset acquisitions by the
Group will be subject to the provisions of the Listing Rules. The Stock
Exchange has the discretion to require the Company to issue an
announcement and/or a circular to the Shareholders where any asset
disposal or asset acquisition represents a departure from the principal
activities of the Group. The Stock Exchange also has the power to
aggregate a series of asset disposals or asset acquisitions by the Group and
any such asset disposal or asset acquisition may result in the Company
being treated as a new listing applicant and subject to the requirements for
new listing applicants as set out in the Listing Rules.


I N F O R M AT I O N R E L AT I N G T O T H E G R O U P

T h e C o m p a n y i s a n i n v e s t m e n t h o l d i n g c o m p a n y, w h o s e S h a r e s a r e l i s t e d o n
the Stock Exchange. Its principal subsidiaries are engaged in the design,
manufacture, distribution, wholesale and retail of ladies' intimate apparel,
principally brassieres.


I N F O R M AT I O N R E L AT I N G T O G U L I A N O A N D I T S S H A R E H O L D E R S

Guliano is a private investment holding company limited by shares
i n c o r p o r a t e d i n t h e R e p u b l i c o f S i n g a p o r e o n 2 0 t h J u l y, 2 0 0 1 h a v i n g a n
authorised share capital of S$100,000 divided into 100,000 ordinary shares
of S$1.00 each, 100 shares of which have been issued fully paid or credited
a s f u l l y p a i d . I t w a s f o r m e d b y Va n D e Ve l d e f o r i t s e l f t o c o m p l e t e t h e C a l l
O p t i o n A g r e e m e n t a n d f o r M r. Wo n g , M r. F u n g a n d Va n D e Ve l d e t o
aggregate their shareholdings in the Comp any in an investment holding
c o m p a n y a n d t o m a k e t h e O f f e r w h e n r e q u i r e d b y t h e Ta k e o v e r s C o d e . S a v e
for being an investment holding company of the Shares, Guliano is not
intended to carry on any business.


A s a t t h e d a t e h e r e o f , Va n D e Ve l d e i s b e n e f i c i a l l y e n t i t l e d t o a l l o f t h e
1 0 0 i s s u e d s h a r e s o f G u l i a n o , o f w h i c h 9 8 s h a r e s a r e i n Va n D e Ve l d e ' s o w n
n a m e a n d t h e r e m a i n i n g 2 s h a r e s a r e h e l d b y Te r r i t o r i a l C a s h L i m i t e d a n d
R e s e r v e C a s h L i m i t e d ( n o m i n e e s h a r e h o l d e r s ) o n t r u s t f o r Va n D e Ve l d e
u n d e r t w o d e c l a r a t i o n s o f t r u s t , b o t h d a t e d 2 9 t h N o v e m b e r, 2 0 0 1 . In
c o n j u n c t i o n w i t h t h e f o r m a t i o n o f G u l i a n o , Va n D e Ve l d e , M r. Wo n g , M r.
Fung and Guliano, as the case may be, have also entered into the Joint
Ve n t u r e A g r e e m e n t a n d t h e S u b s c r i p t i o n A g r e e m e n t o n 3 0 t h N o v e m b e r ,
                                                        10
                                                                     Top Form International Limited - ANNOUNCEMENT
                                                                                        Hong Kong, 11th December, 2001
2 0 0 1 . D e t a i l s o f t h e a g r e e m e n t s a r e s e t o u t b e l o w.


The Subscription Agreement

i.     D a t e o f a g re e m e n t :


       3 0 t h N o v e m b e r, 2 0 0 1


ii.    Expected date of completion:


       o n o r b e f o r e 1 7 t h D e c e m b e r, 2 0 0 1


iii.   Parties:


       (a)     Guliano;


       (b)     Va n D e Ve l d e ;


       (c)     M r. Wo n g ; a n d


       (d)     M r. F u n g .


i v.   B a s i c t e r m s o f t h e S u b s c r i pt i o n A g re e m e n t


       Pursuant to the terms of the Subscription Agreement:


       (a)     M r. Wo n g w i l l t r a n s f e r o r p r o c u r e t h e t r a n s f e r o f 1 4 1 , 8 6 4 , 3 8 0
               Shares (representing approximately 19.28 per cent. of the issu ed
               Shares) in consideration for the allotment of 34,010 shares in
               Guliano (representing approximately 34.010 per cent. of the share
               capital of Guliano);


       (b)     M r. F u n g w i l l t r a n s f e r o r p r o c u r e t h e t r a n s f e r o f 6 6 , 7 0 0 , 0 0 0
               Shares (representing approximately 9. 07 per cent. of the issued
               Shares) in consideration for the allotment of 15,991 shares in
               Guliano (representing approximately 15.991 per cent. of the share
               c a p i t a l o f G u l i a n o ) , o f w h i c h M r. F u n g h a s n o m i n a t e d M r. Wo n g
               as the registered holder of 6,401 shar es in Guliano; and

                                                          11
                                                                        Top Form International Limited - ANNOUNCEMENT
                                                                                           Hong Kong, 11th December, 2001
     (c)    Va n D e Ve l d e s h a l l s u b s c r i b e f o r a n a d d i t i o n a l 4 9 , 8 9 9 s h a r e s i n
            Guliano in consideration for HK$8,164,394, the amount of which
            was determined by reference to the issue price per Share at
            HK$0.1638, and 158,712,362 Shares that were t ransferred to
            G u l i a n o o n 6 t h D e c e m b e r, 2 0 0 1 u p o n c o m p l e t i o n o f t h e C a l l
            Option Agreement.


     After completion of the abovementioned subscriptions, the shares in
     Guliano will be held as follows:


     Va n D e Ve l d e                                 49,999 shares (49.999%)
     M r. Wo n g o r h i s a s s o c i a t e           4 0 , 4 11 s h a r e s ( 4 0 . 4 11 % )
     M r. F u n g o r h i s a s s o c i a t e            9,590 shares (9.590%)


     H o w e v e r, t h e 2 1 6 , 0 0 0 S h a r e s h e l d b y M r s . F u n g ( r e p r e s e n t i n g
     approximately 0.03 per cent. of the issued Shares) will not be
     c o n t r i b u t e d i n t o G u l i a n o ; b u t f o r t h e p u r p o s e o f t h e Ta k e o v e r s C o d e ,
     M r s . F u n g w i l l b e d e e m e d t o b e a c t i n g i n c o n c e r t w i t h Va n D e Ve l d e ,
     M r. Wo n g , M r. F u n g a n d G u l i a n o .


v.   B a c k g ro u n d o f t h e s u b s c r i pt i o n p ro c e s s


     P u r s u a n t t o t h e S u b s c r i p t i o n A g r e e m e n t , e a c h o f Va n D e Ve l d e , M r.
     Wo n g a n d M r. F u n g w i l l t r a n s f e r c e r t a i n n u m b e r o f S h a r e s t o G u l i a n o
     followed by the issuance and allotment of new shares in Guliano. The
     following sets out the sequence of events implicit in the subscription
     process:


     a)     Contribution of Shares into Guliano


            In proportion to the number of Sha res contributed into Guliano by
            Va n D e Ve l d e , M r. Wo n g a n d M r. F u n g o f 1 5 8 , 7 1 2 , 3 6 2 ,
            1 4 1 , 8 6 4 , 3 8 0 a n d 6 6 , 7 0 0 , 0 0 0 S h a r e s r e s p e c t i v e l y, t h e r e s u l t i n g
            shareholding in Guliano will initially be as follows:


                                                                                             Shareholding in
                                                                      Number                Guliano prior to
                                                                    of Shares                 Va n D e Ve l d e ' s
                                                                  contributed              cash contribution
                                                       12
                                                                        Top Form International Limited - ANNOUNCEMENT
                                                                                           Hong Kong, 11th December, 2001
     Va n D e Ve l d e                                  158,712,362                            43.213%
     M r. Wo n g                                        141,864,380                            38.626%
     M r. F u n g                                        66,700,000                            18.161%


     To t a l                                           367,276,742                          100.000%


b)   C a s h c o n t r i b u t i o n b y Va n D e Ve l d e i n t o G u l i a n o


     In conjunction with v(a) above, a cash contribution of
     HK$8,164,394 will be made on completion of the Subscription
     A g r e e m e n t b y Va n D e Ve l d e t o G u l i a n o t o i n c r e a s e i t s e q u i t y
     stake in Guliano to 49.999 per cent. by issuance of new shares in
     Guliano. After the above cash contribution, th e resulting
     shareholding in Guliano will be as follows:


                                                              Number                  Shareholding
                                                            of Shares              in Guliano post
                                                        contributed            cash contribution

     Va n D e Ve l d e ( i n c l u d i n g t h e
        cash contribution of
        $8,164,394)                                     158,712,362                            49.999%
     M r. Wo n g                                        141,864,380                            34.010%
     M r. F u n g                                        66,700,000                            15.991%


     To t a l                                           367,276,742                          100.000%


c)   I n t e r e s t s i n G u l i a n o b e t w e e n M r. Wo n g a n d M r. F u n g


     M r. F u n g h a s n o m i n a t e d t h e a l l o t m e n t o f 6 , 4 0 1 s h a r e s i n G u l i a n o
     r e p r e s e n t i n g 6 . 4 0 1 p e r c e n t . i n G u l i a n o t o M r. Wo n g ( b e i n g t h e
     Guliano Share Transfer as defined in the paragraph headed
     " I n t r o d u c t i o n " ) . A s p a r t o f a p r i v a t e a r r a n g e m e n t b e t w e e n M r.
     Wo n g a n d M r. F u n g , t h e c o n s i d e r a t i o n o f t h e G u l i a n o S h a r e
     Transfer is HK$4,373,460 which is based on the value of Guliano
     (i.e. HK$68,324,324) which is in turn determined with reference
     to the cash amount of HK$8,164,394 and the 367,276,742 Shares
     (representing the number of Shares contributed into Guliano) at
                                              13
                                                           Top Form International Limited - ANNOUNCEMENT
                                                                              Hong Kong, 11th December, 2001
             HK$0.1638 per Share. After completion of the Subscription
             A g r e e m e n t a n d t h e G u l i a n o S h a r e Tr a n s f e r, t h e s h a r e c a p i t a l o f
             G u l i a n o w i l l b e h e l d a s t o 4 9 . 9 9 9 p e r c e n t . b y Va n D e Ve l d e ,
             4 0 . 4 1 1 p e r c e n t . b y M r. Wo n g a n d 9 . 5 9 0 p e r c e n t . b y M r. F u n g .


                                                                  Number       Shareholding in
                                                                of Shares Guliano post Guliano
                                                              contributed       S h a r e Tr a n s f e r

             Va n D e Ve l d e ( i n c l u d i n g
                cash contribution of
                $8,164,394)                                   158,712,362                                49.999%
             M r. Wo n g                                      168,564,380                                4 0 . 4 11 %
             M r. F u n g                                      40,000,000                                  9.590%


             To t a l                                         367,276,742                              100.000%


      Save for the contribution of the 158,712,362 Shares into Guliano
      w h i c h w a s e ff e c t e d o n 6 t h D e c e m b e r, 2 0 0 1 t h r o u g h a n o m i n a t i o n b y
      Va n D e Ve l d e t o G u l i a n o t o c o m p l e t e t h e C a l l O p t i o n A g r e e m e n t w i t h
      M r. L o a n d P D S L i m i t e d , t h e s t e p s a b o v e a r e e x p e c t e d t o t a k e p l a c e
      s im u l t a n e o u s l y t h r o u gh a d i r e c t i s s u a n c e o f 4 9 , 9 9 9 , 4 0 , 4 11 a n d 9 , 5 9 0
      s h a r e s i n G u l i a n o t o Va n D e Ve l d e , M r. Wo n g o r h i s a s s o c i a t e a n d M r.
      F u n g o r h i s a s s o c i a t e , r e s p e c t i v e l y.


vi.   F a m i l y Tr u s t s A r r a n g e m e n t


      E a c h o f M r. F u n g a n d M r. Wo n g m a y w i t h Va n D e Ve l d e ' s a p p r o v a l ( n o t
      to be unreasonably refused), direct Guliano to issue all the shares in
      G u l i a n o t o a c o m p a n y, w h o l l y - o w n e d b y a f a m i l y t r u s t ( " F a m i l y T r u s t
      Compan y") of which he (or members of his immediate family) is
      beneficiary provided that:


      (a)    the Famil y Trust Compan y ent ers i nto a de ed of adh erenc e to the
             J o i n t Ve n t u r e A g r e e m e n t ; a n d


      (b)    he shall enter into a deed of guarantee in favour of the other
             shareholders of Guliano from time to time in respect of all of the
             F a m i l y T r u s t C o m p a n y ' s o b l i g a t i o n s u n d e r t h e J o i n t Ve n t u r e
                                                       14
                                                                    Top Form International Limited - ANNOUNCEMENT
                                                                                       Hong Kong, 11th December, 2001
               Agreement.


T h e J o i n t Ve n t u r e A g r e e m e n t

i.     D a t e o f a g re e m e n t :


       3 0 t h N o v e m b e r, 2 0 0 1


ii.    Parties:


       (a)     Va n D e Ve l d e ;


       (b)     M r. Wo n g ; a n d


       (c)     M r. F u n g .


iii.   C o n d i t i o n s o f t h e J o i n t Ve n t u r e A g r e e m e n t :


       C o m p l e t i o n o f t h e J o i n t Ve n t u r e A g r e e m e n t i s c o n d i t i o n a l u p o n
       completion of the subscriptions under the Subscription Agreeme nt.


i v.   Family trusts arrangements:


       U n d e r t h e J o i n t Ve n t u r e A g r e e m e n t , e a c h p a r t y m a y a c t e i t h e r d i r e c t l y
       o r t h r o u g h c o m p a n i e s o w n e d b y t h e m a n d , i n c a s e o f M r. F u n g a n d M r.
       Wo n g , t h r o u g h t h e i r r e s p e c t i v e f a m i l y t r u s t s .


v.     B o a rd re p re s e n t a t i o n :


       Va n D e Ve l d e , M r. Wo n g a n d M r. F u n g h a v e a g r e e d t o a c o - c o n t r o l
       structure in respect of Guliano, the principal terms of which are as
       follows:


       •       The share capital of Guliano is to be reclassified and redesignated
               i n t o A s h a r e s a n d B s h a r e s . M r. Wo n g a n d M r. F u n g w i l l b o t h h o l d
               A s h a r e s a n d Va n D e Ve l d e w i l l h o l d B s h a r e s .


       •       Management of the day-to-day operations of Guliano will remain
               w i t h M r. Wo n g a n d M r. F u n g a s t h e m a j o r i t y s h a r e h o l d e r s ( w h i c h
                                                           15
                                                                         Top Form International Limited - ANNOUNCEMENT
                                                                                            Hong Kong, 11th December, 2001
               a s b e t w e e n t h e m s e l v e s w i l l r e m a i n w i t h M r. Wo n g a s t h e m a j o r i t y
               s h a r e h o l d e r o f t h e A s h a r e s ) . M r. Wo n g w i l l a c t a s C h a i r m a n o f
               the board of Guliano.


       •       The holders of the A shares shall have the right to appoint and
               remove at least two of the directors of Guliano ("A Directors")
               and the holders of the B shares shall hav e the right to appoint and
               remove at least two of the directors of Guliano ("B Directors").


       •       A quorum at any board meeting of Guliano requires at least one A
               Director and one B Director to be present.


       •       An extensive list of "reserved matters" has been a greed requiring
               the consent at board level of at least one A Director and one B
               Director and at shareholder level of the majority of the A shares
               and the majority of the B shares.


       A s s t a t e d i n t h e p a r a g r a p h h e a d e d " I n t e n t i o n o f G u l i a n o a n d Va n D e
       Ve l d e i n r e l a t i o n t o t h e C o m p a n y " , G u l i a n o d o e s n o t i n t e n d t o i n s t i t u t e
       any change in management and intends that the existing management
       team of the Company should continue to operate and manage the
       d a y - t o - d a y b u s i n e s s o f t h e C o m p a n y, a l t h o u g h Va n D e Ve l d e , t h r o u g h
       Guliano, may propose to the Board to nominate a minimum of two
       d i r e c t o r s t o t h e B o a r d a f t e r c o m p l e t i o n o f t h e O f f e r. I t i s t h e i n t e n t i o n
       o f t h e s h a r e h o l d e r s o f G u l i a n o t o p r o p o s e t o t h e C o m p a n y, w i t h t h e
       consent of the Company and subject to all necessa ry approvals, to seek
       the requisite financing to settle the Convertible Loan Notes, upon
       receipt of a demand notice in accordance with the terms and conditions
       of the agreement in respect of the Convertible Loan Note, by a
       combination of bank borrowings an d shareholder's loan from Guliano.


BACKGROUND OF MR. WONG AND MR. FUNG

M r. F u n g i s t h e C h a i r m a n o f t h e G r o u p a n d i s r e s p o n s i b l e f o r t h e
a d m i n i s t r a t i o n o f t h e G r o u p . M r. F u n g h a s o v e r 3 0 y e a r s ' e x p e r i e n c e i n t h e
a p p a r e l i n d u s t r y. H e w a s f o r m e r l y t h e m a n a g i n g d i r e c t o r o f S m a r t S h i r t s
L i m i t e d a n d a d i r e c t o r o f K e l l w o o d C o m p a n y, a n a p p a r e l c o m p a n y l i s t e d o n
t h e N e w Yo r k S t o c k E x c h a n g e .

                                                           16
                                                                         Top Form International Limited - ANNOUNCEMENT
                                                                                            Hong Kong, 11th December, 2001
M r. Wo n g i s a c o - f o u n d e r o f t h e G r o u p a n d t h e G r o u p ' s M a n a g i n g D i r e c t o r ,
r e s p o n s i b l e f o r t h e o p e r a t i o n s o f t h e G r o u p . M r. W o n g h a s o v e r 3 0 y e a r s '
experience in the brassiere trade.


I N F O R M AT I O N R E L AT I N G T O VA N D E V E L D E

T h e Va n D e Ve l d e g r o u p , b e i n g a n e x i s t i n g c u s t o m e r o f t h e C o m p a n y,
manufactures and markets fashionable luxury lingerie under its own
t r a d e m a r k s M a r i e J o , M a r i e J o L ' Av e n t u r e , P r i m a D o n n a a n d M a r i e J o
L ' E x c l u s i v e . T h e d i r e c t o r s o f Va n D e Ve l d e b e l i e v e t h a t i t i s o n e o f t h e
market leaders in the Benelux and one of the top three players in most
other European Union countries in the relevant segment. Its estimated
turnover for 2001 is EURO84 million (or equivalent to approximately
HK$585.5 million).


T h e Va n D e Ve l d e g r o u p w a s e s t a b l i s h e d i n 1 9 1 9 , w h e n t h e f o u n d e r s A c h i e l
Va n d e Ve l d e a n d h i s w i f e M a r g a r e t h a s e t u p a s m a l l c o m p a n y f o r t h e
creation and manufacturing o f ladies' corsets. In the following 80 years,
Va n D e Ve l d e g r o u p t h e n g r e w i n t o o n e o f t h e l e a d i n g E u r o p e a n d e s i g n e r s ,
m a n u f a c t u r e r s a n d m a r k e t e e r s o f l u x u r y l i n g e r i e . T h e s h a r e s o f t h e Va n D e
Ve l d e g r o u p a r e q u o t e d o n t h e c o n t i n u o u s s e g m e n t o f E u r o n e x t .


T h e Va n D e Ve l d e g r o u p ' s t u r n o v e r f o r t h e t w o y e a r s e n d e d 3 1 s t D e c e m b e r ,
1999 and 2000 amounted to approximately EURO71.3 million and
EURO79.7 million (or equivalent to approximately HK$497.0 million and
H K $ 5 5 5 . 5 m i l l i o n ) , r e s p e c t i v e l y. N e t p r o f i t o f t h e V a n D e Ve l d e g r o u p f o r
t h e t w o ye a r s e n d e d 3 1 s t D e c e m b e r, 1 9 9 9 a n d 2 0 0 0 t o t a l l e d a p p r o x i m a t e l y
E U R O 11 . 3 m i l l io n a n d E U R O 1 2 . 4 m i ll i o n ( o r e q u i v a l e n t t o a p p r ox i m a t e l y
H K $ 7 8 . 8 m i l l i o n a n d H K $ 8 6 . 4 m i l l i o n ) , r e s p e c t i v e l y. A s a t 3 1 s t D e c e m b e r ,
1 9 9 9 a n d 2 0 0 0 , t h e Va n D e Ve l d e g r o u p ' s n e t a s s e t v a l u e s w e r e E U R O 3 5 . 1
million and EURO43.1 million (or equivalent to approximately HK$244.6
m i l l i o n a n d H K $ 3 0 0 . 4 m i l l i o n ) r e s p e c t i v e l y.


G E N E R A L I N F O R M AT I O N I N R E L AT I O N T O T H E O F F E R

In relation to the Offer:


(i)    The Executive is being consulted in respect of the appropriate terms of
       the offer for the Offer Convertible Loan Notes and a further
                                                          17
                                                                       Top Form International Limited - ANNOUNCEMENT
                                                                                          Hong Kong, 11th December, 2001
            announcement will be made as soon as practicable upon determination
            of such terms;


     ( i i ) A n o ff e r d o c u m e n t s e t t i n g o u t t h e t e r m s o f t h e O ff e r, a n d a c c e p t a n c e
             and transfer forms will be sent to the Shareholders and Convertible
             Loan Note holders, within 21 days from the date of this announcement
             unless otherwise extended with the consent of the Executive, in
             a c c o r d a n c e w i t h t h e Ta k e o v e r s C o d e ;


     (iii) The         Independent          Board           Committee            comprising           independent
           non-executive Directors will be formed to consider and recommend to
           the Shareholders and Convertible Loan Note holders as to whether or
           n o t t o a c c e p t t h e O f f e r. A n i n d e p e n d e n t f i n a n c i a l a d v i s e r w i l l b e
           appointed to advise the Independent Board Committee in this regard.
           A n o ff e r e e d o c u m e n t c o n t a i n i n g d e t a i l s o f t h e O ff e r, i n c l u d i n g t h e
           l e t t e r o p i n i o n f r o m t h e i n d e p e n d e n t f i n a n c i a l a d v i s e r, w i l l b e
           dispatched to the Shareholders and Convertibl e Loan Note holders
           within 14 da ys after the despatc h of the offer document unless
            otherwise extended with the consent of the Executive; and


     (iv) In addition, Access Capital has been appointed the financial adviser to
          t h e C o m p a n y i n r e s p e c t o f t h e O f f e r.


I V. F I N A N C I A L I M P L I C AT I O N S T O T H E C O M PA N Y

     T h e a c q u i s i t i o n o f S h a r e s u n d e r t h e C a l l O p t i o n A g r e e m e n t c a u s e d Va n D e
     Ve l d e t o b e c o m e a b e n e f i c i a l s h a r e h o l d e r o f o v e r 2 0 p e r c e n t . o f t h e i s s u e d
     Shares. As a result of this, an event of default has been trigge red under the
     Convertible Loan Notes and the holders of the Convertible Loan Notes are
     entitled under Condition 10 of the Convertible Loan Notes to require an
     earl y redemption of the Convertible Loan Notes whereb y the principal
     amount of the Convertible Lo an Notes together with any accrued but unpaid
     interest shall become immediately due and payable. The right of the
     holders of the Convertible Loan Notes to such early redemption as
     aforesaid has triggered a cross -default under the banking facilities ("the
     "Banking Facilities") of the Group in connection with the Group's debt
     restructuring exercise in January 1998. A certain quorum of participating
     banks have the right to terminate the obligation of each participating bank
     to make its commitment and demand fo r the repayment of the banking
                                                              18
                                                                           Top Form International Limited - ANNOUNCEMENT
                                                                                              Hong Kong, 11th December, 2001
       f a c i l i t i e s o f t h e C o m p a n y. U n d e r t h e t e r m s o f t h e C o n v e r t i b l e L o a n N o t e s
       and the agreement for the debt restructuring referred to above, the
       Company is required to notify the noteholders and the participating banks
       of the events of default; and the Company will notify the relevant parties
       following the release of this announcement. As of the date of this
       announcement, the Company has not received any indication from any
       holder of the Convertible Loan Note to require an early r edemption of the
       Convertible Loan Note. As of the date of this announcement, the Group has
       not received any indication from any participating banks or their agent to
       terminate their obligation to make their respective commitments nor has the
       Group received any demand for early repayment of the Banking Facilities.
       A s o f 3 0 t h N o v e m b e r, 2 0 0 1 , t h e t o t a l a m o u n t o f p r i n c i p a l a n d a c c r u e d
       interests outstanding under the Convertible Loan Notes and the drawn -down
       portion of the Banking Facilities amounted to approxim ately HK$122.6
       m i l l i o n a n d a p p r o x i m a t e l y H K $ 1 4 9 . 4 m i l l i o n r e s p e c t i v e l y. A s o f 3 0 t h
       N o v e m b e r, 2 0 0 1 , t h e G r o u p h a d d i s p o s a b l e c a s h b a l a n c e o f a p p r o x i m a t e l y
       HK$48.1 million and the Group is currently exploring refinancing
       opportunities with a view to funding the repayment of the Convertible Loan
       Notes and/or the drawn-down Banking Facilities, upon receipt of demand
       for rep a ym ent. Th e Dire ctors ar e aw are of the implica tions of these eve nts
       and will address them as soon as practicable. Shareholders will be infor med
       of any material development by way of an announcement as appropriate
       pursuant to the relevant requirements of the Listing Rules.


V.     RESUMPTION OF TRADING IN THE SHARES

       A t t h e r e q u e s t o f t h e C o m p a n y, t r a d i n g i n t h e S h a r e s o n t h e S t o c k E x c h a n g e
       w a s s u s p e n d e d f r o m 1 0 : 0 0 a . m . o n 4 t h D e c e m b e r, 2 0 0 1 p e n d i n g r e l e a s e o f
       this announcement. Application has been made by the Company for the
       resumption of trading in the Shares with effect from 10:00 a.m. on 12th
       D e c e m b e r, 2 0 0 1 .


Shareholders are advised to exercis e caution in dealing in the secu rities of
t h e C o m p a n y. T h e O f f e r i s c o n d i t i o n a l u p o n G u l i a n o , Va n D e Ve l d e , M r.
F u n g a n d M r. Wo n g c o l l e c t i v e l y b e i n g a b l e t o a c q u i r e a b o v e 5 0 p e r c e n t . o f
t h e i s s u e d S h a r e s p u r s u a n t t o t h e Ta k e o v e r s C o d e .


The offer to acqui re the Offer Convertible Loan Notes is conditional on th e
offer to acquire the Offer Shares becoming unconditional.
                                                               19
                                                                            Top Form International Limited - ANNOUNCEMENT
                                                                                               Hong Kong, 11th December, 2001
DEFINITIONS

"Access Capital"             Access Capital     Limited, an investment
                             adviser and a securities dealer registered
                             under the Securities Ordinance (Chapter 333
                             of the Laws of Hong Kong)


"Board"                      the board of Directors


"Call Option Agreement"      t h e c a l l o p t i o n a g r e e m e n t d a t e d 3 r d O c t o b e r,
                             2 0 0 1 , e n t e r e d i n t o a m o n g M r. L o , P D S
                             L i m i t e d a n d Va n D e Ve l d e w h e r e b y t h e
                             Ve n d o r s g r a n t e d Va n D e Ve l d e a n o p t i o n t o
                             a c q u i r e t h e Ve n d o r s ' r e s p e c t i v e i n t e r e s t s i n
                             the Company with the option exercisable
                             u n t i l 3 r d D e c e m b e r, 2 0 0 1


"Company"                    To p F o r m I n t e r n a t i o n a l L i m i t e d ( c o m p a n y
                             number F5235) a Bermuda incorporated
                             company registered in Hong Kong under Part
                             XI of the Companies Ordinance (Chapter 32
                             of the Laws of Hong Kong) as an overseas
                             company and listed on the Stock Exchange
                             trading under stock code 333


"Convertible Loan Note(s)"   the unlisted convertible loan notes issued on
                             2 0 t h J a n u a r y, 1 9 9 8 h e l d b y B e s t f o r m , I n c . ,
                             Va n D e Ve l d e a n d a n o t h e r n o t e h o l d e r a s t o
                             US$3,500,000,                       US$1,000,000                   and
                             U S $ 11 , 0 0 0 , 0 0 0      r e s p e c t i v e l y. From        and
                             i n c l u d i n g 2 0 t h J a n u a r y, 2 0 0 1 t o ( a n d
                             i n c l u d i n g ) 2 0 t h J a n u a r y, 2 0 0 3 ( t h e m a t u r i t y
                             date), the notes shall bear interest at a rate
                             of 5.75 per cent. per annum on the principal
                             amount of the notes outstanding. The
                             noteholders have the rights to convert in
                             whole or in part the principal amount of the
                             notes into Shares at any time and from time
                                     20
                                                   Top Form International Limited - ANNOUNCEMENT
                                                                      Hong Kong, 11th December, 2001
                                t o t i m e o n o r a f t e r 2 0 t h J a n u a r y, 1 9 9 9 i n
                                amounts of not less than US$50,000 on each
                                conversion, save that if at any time the
                                principal outstanding amount of the notes is
                                less than US$50,000, the whole (but not part
                                only) of the principal outstanding amount of
                                the notes may be converted. The price at
                                which each Share shall be issued upon
                                conversion         shall      be       US$0.0401            (or
                                equivalent   to   approximately HK$0.31),
                                subject to adjustment. For the purpose of
                                this announcement, each unit of note shall
                                be equivalent to US$50,000.


"Director(s)"                   the director(s) of the Company


"EURO"                          Euros, the legal currency of the countries in
                                the Euro zone


"Executive"                     the Executive Director of the Corporate
                                Finance Division of the SFC and any
                                delegates of the Executive Director


"Group"                         the Company and its subsidiaries


"Guliano"                       Guliano         Pte        Limited,         a       company
                                incorporated in the Republic of Singapore
                                with limited liability with registered number
                                200104796H


"Hong Kong"                     the Hong Kong                Special       Administrative
                                Region of the PRC


"HK$"                           Hong Kong dollars


"Independent Board Committee"   an independent board committee comprising
                                the independent non-executive Directors to
                                be formed to give advice in respect of the
                                Offer
                                      21
                                                  Top Form International Limited - ANNOUNCEMENT
                                                                     Hong Kong, 11th December, 2001
" I N G B a n k N . V. "                       I N G B a n k N . V. , a n e x e m p t d e a l e r r e g i s t e r e d
                                               under the Securities Ordinance (Chapter 333
                                               of the Laws of Hong Kong)


" J o i n t Ve n t u r e A g r e e m e n t "   t h e J o i n t Ve n t u r e A g r e e m e n t d a t e d 3 0 t h
                                               N o v e m b e r , 2 0 0 1 , e n t e r e d i n t o a m o n g Va n D e
                                               Ve l d e , M r. Wo n g a n d M r. F u n g


"Listing Rules"                                the  Rules     Governing   the   Listing                           of
                                               Securities on the Stock Exchange


" M r. F u n g "                               F u n g Wa i Yi u , C h a i r m a n o f t h e G r o u p


" M r. L o "                                   Lo Kit Lun, Frank, together with PDS
                                               Limited, a substantial shareholder of the
                                               Company prior to completion of the Call
                                               O p t i o n A g r e e m e n t o n 6 t h D e c e m b e r, 2 0 0 1


" M r. Wo n g "                                Wo n g C h u n g C h o n g , E d d i e , G r o u p M a n a g i n g
                                               Director


"Mrs. Fung"                                    M r s . F u n g Ya u H a n , E l i s a , s p o u s e o f M r.
                                               Fung


"Offer"                                        the conditional cash offer to be made by ING
                                               B a n k N . V. , o n b e h a l f o f G u l i a n o , Va n D e
                                               Ve l d e , M r. F u n g a n d M r. Wo n g , t o a c q u i r e
                                               all the issued Shares and the outstanding
                                               Convertible Loan Notes not already h eld or
                                               a g r e e d t o b e h e l d b y G u l i a n o , Va n D e Ve l d e ,
                                               M r. F u n g a n d M r. Wo n g o r p a r t i e s a c t i n g i n
                                               concert with any of them


"Offer Convertible Loan Note(s)"               the      Convertible           Loan        Notes        held      by
                                               i n v e s t o r s o t h e r t h a n Va n D e Ve l d e


"Offer Share(s)"                               all the issued Share(s) other than those
                                               already held or agreed to be held by Guliano,
                                                      22
                                                                   Top Form International Limited - ANNOUNCEMENT
                                                                                      Hong Kong, 11th December, 2001
                               Va n D e Ve l d e , M r. Wo n g a n d M r. F u n g o r
                               parties acting in concert with any of them


"PDS Limited"                  Pacific Dragon Services Limited (the trustee
                               o f a u n i t t r u s t i n w h i c h M r. L o i s a n e l i g i b l e
                               beneficiary), a company incorporated in the
                               B r i t i s h Vi r g i n I s l a n d s w i t h l i m i t e d l i a b i l i t y


"PRC"                          People's Republic of China, for the purpose
                               of this announcement, excluding Hong Kong
                               and Macau Special Administrative Region


"Sale Shares"                  a total of 158,712,362 Shares, representing
                               approximately 21.58 per cent. of the existing
                               i s s u e d S h a r e s , s o l d t o Va n D e Ve l d e o r i t s
                               n o m i n e e b y t h e Ve n d o r s p u r s u a n t t o t h e C a l l
                               Option Agreement


"S$"                           Singaporean dollars


"SFC"                          Securities and Futures Commission of Hong
                               Kong


"Share(s)"                     share(s) of HK$0.10 each                             in     the       share
                               capital of the Company


"Shareholder(s)"               holder(s) of Share(s)


"Stock Exchange"               The Stock Exchange of Hong Kong Limited


"Subscription Agreement"       the Subscription Agreement dated 30th
                               N o v e m b e r, 2 0 0 1 , e n t e r e d i n t o a m o n g G u l i a n o ,
                               Va n D e Ve l d e , M r. Wo n g a n d M r. F u n g


" Ta k e o v e r s C o d e "   the     Hong        Kong        Code        on     Ta k e o v e r s     and
                               Mergers


" Va n D e Ve l d e "          Va n D e Ve l d e N . V. , c o m p a n y i n c o r p o r a t e d i n
                               B e l g i u m o n 7 t h D e c e m b e r, 1 9 9 2 ( r e g i s t e r e d
                                       23
                                                     Top Form International Limited - ANNOUNCEMENT
                                                                        Hong Kong, 11th December, 2001
                                                            number R.C. Dendermonde no. 47.815),
                                                            whose shares are listed on the continuous
                                                            segment of Euronext


" Ve n d o r ( s ) "                                        M r. L o a n d P D S L i m i t e d , b o t h o f                    whom
                                                            together hold all of the Sale Shares


"US$"                                                       United States dollars


Unless otherwise specified in this announcement, amounts denominated in
EURO and US dollars have been converted into Hong Kong dollars at the
following exchange rate: US$1.00 = HK$7.80; EURO1=HK$6.97. Such
translation should not be construed as a representation that EURO and US
dollars have been, could have been or could b e, converted into Hong Kong
dollars at that rate or at all.


  By Order of the Board                    By Order of the Board                            By Order of the Board
     Va n D e Ve l d e N . V.               Guliano Pte Limited                    To p F o r m I n t e r n a t i o n a l L i m i t e d
  H e r m a n Va n d e Ve l d e            H e r m a n Va n d e Ve l d e                          F u n g Wa i Yi u
            Director                                 Director                                        Chairman


H o n g K o n g , 11 t h D e c e m b e r, 2 0 0 1


T h e D i re c t o r s j o i n t l y a n d s e v e r a l l y a c c e p t f u l l re s p o n s i b il i t y f o r t h e a c c u r a c y o f
the information concerning the Group contained in this announcem ent (other
t h a n i n f o r m a t i o n r e l a t i n g t o G u l i a n o , Va n D e Ve l d e , M r. Wo n g o r M r. F u n g ,
i n c l u d in g wi t h o u t l i mi t a t i o n t o t h e i r re s p e c t i v e i n t e n t i o n s c o v e r i n g t h e O ff e r or
t h e G ro u p ) a n d c o n fi r m , h a v i n g m a d e a l l re a s o n a b l e i n q u i ri e s , t h a t t o t h e b e s t
o f t h e i r k n o w l e d g e , o p i n i o n s e x p re s s e d b y t h e D i re c t o rs i n t h i s a n n o u n c e m e n t
h a v e b e e n a r r i v e d a t a f t e r d u e a n d c a re f u l c o n s i d e r a t i o n a n d t h e re a re n o o t h e r
f a c t s c o n c e r n i n g t h e G ro u p n o t c o n t a i n e d i n t h i s a n n o u n c e m e n t (o t h e r t h a n a s
described above), the omission of which would make any statement concerning
t h e G ro u p i n t hi s a n n o u n c e m e n t m i s l e a d i n g .


T h e d i r e c t o r s o f Va n D e Ve l d e j o i n t l y a n d s e v e r a l l y a c c e p t f u l l r e s p o n s i b i l i t y f o r
the accuracy of the information contained in this announcement (other than
i n f o r m a t i o n r e l a t i n g t o t h e C o m p a n y, G u l i a n o , M r. Wo n g o r M r. F u n g ) a n d
c o n f i r m , h a v i n g m a d e a l l re a s o n a b l e i n q u ir i e s , t h a t t o th e b e s t o f t h e i r
re s p e c t i v e k n o w l e d g e , o p i ni o n s e x p re s s e d i n t hi s a n n o u n c e m e n t h a v e b e e n
                                                                     24
                                                                                   Top Form International Limited - ANNOUNCEMENT
                                                                                                      Hong Kong, 11th December, 2001
a r ri v e d a t a f t e r d u e a n d c a re f u l c o n s i d e r at i o n a n d t h e re a re n o o t h e r f a c t s n o t
c o n t a i n e d i n t h i s a n n o u n c e m e n t ( o t h e r t h a n i n f o r m a t i o n r e l a t i n g t o t h e C o m p a n y,
G u l i a n o , M r. Wo n g o r M r. F u n g ) , t h e o m i s s i o n o f w h i c h w o u l d m a k e a n y
statement in this announcement misleading.


M r. Wo n g a c c e p t s f u l l r e s p o n s i b i l i t y f o r t h e a c c u r a c y o f t h e i n f o r m a t i o n
c o n t a i n e d in t h i s a n n o u n c e m e n t re l a ti n g t o h i m s e l f , a n d c o n fi r m s , h a v i n g m a d e
a ll re a s o n a b l e i n q u i ri e s , t h a t t o t h e b e s t o f h i s k n o w l e d g e , o p i n i o n s e x p re s s e d
i n t h i s a n n o u n c e m e n t h a s b e e n a r r i v e d a t a f t e r d u e a n d c a re f u l c o n s i d e r a t i o n
a n d t h e re a re n o ot h e r f a c t s n o t c o n t a i n e d i n t hi s a n no u n c e m e n t re l at i n g t o
himself, the omission of which would make any statement in this announcement
misleading.


M r. F u n g a c c e p t s f u l l r e s p o n s i b i l i t y f o r t h e a c c u r a c y o f t h e i n f o r m a t i o n
c o n t a i n e d in t h i s a n n o u n c e m e n t re l a ti n g t o h i m s e l f , a n d c o n fi r m s , h a v i n g m a d e
a ll re a s o n a b l e i n q u i ri e s , t h a t t o t h e b e s t o f h i s k n o w l e d g e , o p i n i o n s e x p re s s e d
i n t h i s a n n o u n c e m e n t h a s b e e n a r r i v e d a t a f t e r d u e a n d c a re f u l c o n s i d e r a t i o n
a n d t h e re a re n o ot h e r f a c t s n o t c o n t a i n e d i n t hi s a n no u n c e m e n t re l at i n g t o
himself, the omission of which would make any statement in this announcement
misleading.


T h e d i re c t o r s o f G u li a n o j o i n tl y a n d s e v e r a l l y a c c e p t f ul l re s p o n s i b i li t y f o r t h e
accuracy of the information contained in this announcement (other than
i n f o r m a t i o n r e l a t i n g t o t h e C o m p a n y, Va n D e Ve l d e , M r. Wo n g o r M r. F u n g ) a n d
c o n f i r m , h a v i n g m a d e a l l re a s o n a b l e i n q u ir i e s , t h a t t o th e b e s t o f t h e i r
re s p e c t i v e k n o w l e d g e , o p i ni o n s e x p re s s e d i n t hi s a n n o u n c e m e n t h a v e b e e n
a r ri v e d a t a f t e r d u e a n d c a re f u l c o n s i d e r at i o n a n d t h e re a re n o o t h e r f a c t s n o t
c o n t a i n e d i n t h i s a n n o u n c e m e n t ( o t h e r t h a n i n f o r m a t i o n r e l a t i n g t o t h e C o m p a n y,
Va n D e Ve l d e , M r. Wo n g o r M r. F u n g ) , t h e o m i s s i o n o f w h i c h w o u l d m a k e a n y
statement in this announcement misleading.


"Please also refer to the published version of this announcement in the South
China Morning Post"




                                                                   25
                                                                                 Top Form International Limited - ANNOUNCEMENT
                                                                                                    Hong Kong, 11th December, 2001

								
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