General Announcement Reference No TC-070628-63732

Company Name	:	TALAM CORPORATION BERHAD
Stock Name	:	TALAM
Date Announced	:	28/06/2007

Type	:	Announcement
Subject	:	TALAM CORPORATION BERHAD (“TALAM” or “Company”) PROPOSED DISPOSAL OF 50% EQUITY INTEREST IN LARUT LEISURE ENTERPRISE (HONG KONG) LIMITED

Contents :

Larut Overseas Venture Sdn Bhd (“LOV”) has today entered into a Share Sale Agreement with IJM Properties Sdn Bhd (“IJMP”) to dispose of 1,515,000 ordinary shares of HK$1 each representing 50% equity interest in Larut Leisure Enterprise (Hong Kong) Limited (“LLE”), Hong Kong for HK$1 (“the Proposed Disposal”). IJMP will also assume a loan of RM25.63 million from the Talam Group to LLE.

Thereafter, LLE will cease to be a subsidiary of Talam and become a 50% owned associate company of Talam.

LLE owns a 60% equity interest in Jilin Dingtai Enterprise Development Co Ltd, which owns a partially completed “Yin Hai Complex” in Changchun, Jilin Province, Peoples Republic of China. The gross sales value of the proposed 35-storey commercial cum residential complex is estimated at CNY745 million (approximately RM340 million).

IJMP is a wholly-owned subsidiary of IJM Corporation Berhad. LLE is a wholly-owned subsidiary of LOV, which is a subsidiary of the Company.

None of the Directors nor substantial shareholders of the Company, or persons connected with them, has any interest, direct or indirect, in the Proposed Disposal, and no approval of shareholders is required. The Proposed Disposal is not expected to have any significant effect on the earnings or net assets per share of the Company for the financial year ending 31 January 2008.


 

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