General Announcement Reference No TC-070927-63940

Submitting Merchant Bank	:	RHB Investment Bank Berhad
Company Name	:	TALAM CORPORATION BERHAD
Stock Name	:	TALAM
Date Announced	:	27/09/2007

Type	:	Announcement
Subject	:	Talam Corporation Berhad ("Talam" or the "Company") Proposed Regularisation Plan

Contents :

We refer to the announcement dated 27 April 2007.

On behalf of the Company and in compliance with paragraph 3.1 (b) of Practice Note 17/2005 of the Listing Requirements of Bursa Malaysia Securities Berhad, RHB Investment Bank Berhad (formerly known as RHB Sakura Merchant Bankers Berhad) wishes to announce that the Securities Commission ("SC") had, vide its letter dated 25 September 2007 (which was received on 26 September 2007), did not approve the Proposed Regularisation Plan based on the following factors:

(i) Talam will not immediately turnaround post-restructuring based on the financial forecast and projections submitted;

(ii) substantial accumulated losses of RM156 million remain post restructuring;

(iii) the proposals appear to benefit the creditors more than the minority shareholders of Talam as the shareholders will be undergoing a capital reduction exercise whilst none of the creditors will be taking a 'hair-cut' on the amount owing to them by Talam;

(iv) upon completion of the restructuring scheme, Abrar Discounts Berhad ("ADB") will hold 36.3% equity interest in Talam. There is uncertainty over the possible emergence of a new substantial shareholder which would have an impact on the direction of Talam moving forward as at this juncture, it is not known if ADB will dispose its interest in Talam or the identity of the potential buyer of the block of shares held by ADB; and

(v) there is no clear indication that IJM Corporation Berhad ("IJM") is acting as a 'white-knight' to Talam's restructuring scheme given that, inter-alia,:

· IJM would not be a substantial shareholder in Talam pursuant to the restructuring scheme. IJM’s effective interest in Talam, via its shareholding in Kumpulan Europlus Berhad, is minimal; and

· IJM is involved only in selected stalled projects of Talam.

We wish to announce, on behalf of the Company, that the Board of Directors of Talam intends to appeal on the SC’s decision based on an improved plan to address the above issues.

This announcement is dated 27 September 2007.




 

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