Announcement on Acquisition of Land

Document Sample
Announcement on Acquisition of Land Powered By Docstoc
					GRAND HOOVER BERHAD
ACQUISITION OF LAND

1.   INTRODUCTION

     The Board of Directors of Grand Hoover Berhad (“GHB”) wishes to announce
     that its wholly-owned subsidiary, Hoover Builders Sdn. Bhd. (“HBSB”) has on
     18th August, 2010 entered into a Sale and Purchase Agreement (“SPA”) with
     Mr. Khoo Teng Lye (NRIC No. 640331-07-5679) and Mdm. Wong Huey Shyan
     (NRIC No. 641128-08-5024) (collectively referred to as “the Vendors”) for the
     acquisition of all that piece of vacant land held under GM 1376, Lot 742, Mukim
     Semenyih, Sungai Rinching, Daerah Hulu Langat, Negeri Selangor and measuring
     approximately 2.681 hectares (6 acres 2 roods 20.0000 pole) in area (“the Land”)
     free from all encumbrances and with vacant possession at the consideration of
     RM4,905,900.00 (“the Acquisition”).

2.   INFORMATION ON THE LAND

     The Land is a piece of freehold agricultural land and is intended for future
     development by the GHB Group.

3.   INFORMATION ON HBSB

     HBSB is a private limited company incorporated in Malaysia under the
     Companies Act, 1965 on 13th February, 1982. It has an authorised capital of
     RM1,000,000 divided into 1,000,000 ordinary shares of RM1.00 each, of which
     all the shares have been fully issued and fully paid-up. The principal activities of
     HBSB are those of building and civil contractors.

4.   BASIS OF PURCHASE CONSIDERATION

     No valuation was carried on the Land. The purchase consideration was arrived at
     on a willing-buyer and willing-seller basis after taking into consideration the
     prevailing market value of the area surrounding the Land.

5.   SALIENT TERMS OF SPA

     The purchase consideration for the completion of the Acquisition is to be paid in
     the following manner -

     (a)    The deposit of 10% of the purchase consideration equivalent to
            RM490,590.00 has been paid by HBSB to the Vendors on the signing of
            the SPA.

     (b)    The balance purchase consideration of RM4,415,310.00 is to be paid
            within 90 days from the date of the SPA, with an extension of 30 days
            subject to payment of interest calculated at 8% per annum on the
            outstanding balance purchase consideration after the said 90 days up to the
            date of full payment.
                                            -2-

6.    SOURCE OF FUNDING

      The Acquisition is to be settled by cash through internal funds of the GHB Group
      and bank borrowing.

7.    RATIONALE FOR THE ACQUISITION

      The rationale for the Acquisition is to expand the property development division
      of the GHB Group which will in turn benefit its own construction and trading
      of building materials divisions.

8.    RISK FACTORS

      The Board of Directors of GHB does not foresee any material risk arising from
      the Acquisition which will materially affect the operation and performance of the
      GHB Group.

9.    FINANCIAL EFFECTS OF THE ACQUISITION

      (a)    Share capital and substantial shareholders

             The Acquisition will not have any effect on the share capital of GHB or its
             substantial shareholders.

      (b)    On earnings, net assets and gearing

             The Acquisition will not have any material effect on the earnings, net
             assets and gearing of the GHB Group for the financial year ending 30th
             June, 2011.

10.   HIGHEST PERCENTAGE RATIO

      The highest percentage ratio applicable to the Acquisition pursuant to Paragraph
      10.02(g) of the Listing Requirements is 14.6 %.

11.   APPROVAL

      The Acquisition is not subject to GHB shareholders’ approval.

12.   DIRECTORS’ AND MAJOR SHAREHOLDERS INTEREST

      None of the directors and major shareholders of GHB and its subsidiaries or
      persons connected to them, have any interest, direct or indirect, in the Acquisition.
                                           -3-



13.   DIRECTORS’ STATEMENT

      The Board of Directors of GHB is of the opinion that the Acquisition is in the best
      interest of GHB Group.

14.   DOCUMENT FOR INSPECTION

      The SPA is available for inspection at the registered office of GHB at No. 63-G,
      Jalan Anggerik Vanilla T31/T, Kota Kemuning, Section 31, 40460 Shah Alam,
      Selangor during normal office hours from Monday to Friday (except public
      holiday) for a period of 1 month from the date of this announcement.

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:18
posted:8/21/2012
language:English
pages:3