General Announcement
Reference No
TC-071024-62677
Company Name
:
TALAM CORPORATION BERHAD
Stock Name
:
TALAM
Date Announced
:
24/10/2007
Type
:
Announcement
Subject
:
TALAM CORPORATION BERHAD (“TALAM” or “Company”)
PROPOSED ACQUISITION OF 40% EQUITY INTEREST IN JILIN DINGTAI ENTERPRISE DEVELOPMENT COMPANY LIMITED BY LARUT LEISURE ENTERPRISE (HONG KONG) LIMITED AT A TOTAL CONSIDERATION OF RMB45,000,000
Contents :
1. INTRODUCTION
The Board of Directors of Talam wishes to announce that its subsidiary, Larut Leisure Enterprise (Hong Kong) Limited (“LLEHK”) has on 23 October 2007 entered into a Share Sale Agreement with Jilin Hua Tian Property Group Co. Ltd (“Jilin Hua Tian”) to acquire 40% equity interest in Jilin Dingtai Enterprise Development Company Limited (“Jilin Dingtai”) (“the Proposed Acquisition”) at a total consideration of RMB45,000,000.
Currently, LLEHK owns a 60% equity interest in Jilin Dingtai. After the Proposed Acquisition, Jilin Dingtai will be the wholly owned subsidiary of LLEHK.
Jilin Dingtai is the beneficial and registered owner of a piece of land measuring approximately 6,665 sq meter together with a proposed development known as Yin Hai Complex, comprises of an incomplete structure of a proposed 35 storey commercial, office and residential building together with 2 level basement car park located at No. 19, Xian Road, Changchun, Jilin Province, People’s Republic of China.
2.
INFORMATION ON JILIN DINGTAI, LLEHK AND JILIN HUA TIAN
2.1
Information on Jilin Dingtai
Jilin Dingtai was incorporated on 23 March 1993 in People’s Republic of China with its business address at No. 823, Xian Road, Chaoyang District, Changchun, Jilin Province, People’s Republic of China. The authorised share capital is RMB100,000,000.00 of which RMB100,000,000.00 have been issued and fully paid up.
The principal activity of Jilin Dingtai is property development.
2.2
Information on LLEHK
LLEHK was incorporated on 23 February 1993 in Hong Kong with its registered address at 7/F Allied Kajima Building, 138 Gloucester Road, Hong Kong. The authorised share capital is HK$3,200,000.00 divided into 3,200,000 ordinary shares of HK$1.00 each, of which RM3,030,000.00 divided into 3,030,000 ordinary shares of HK$1.00 each have been issued and fully paid up.
The principal activity of LLEHK is investment holding.
2.3
Information on Jilin Hua Tian
Jilin Hua Tian was incorporated on 17 October 2000 in People’s Republic of China with its business address at No. 25, Anda Jie, Changchun, Jilin Province, People’s Republic of China.
3.
APPROVALS
The Proposed Acquisition is not subject to the approval of Talam’s shareholders and is not subject to other government authorities approvals.
4.
RATIONALE FOR THE PROPOSED ACQUISITION
The Board of Directors of Talam is of the opinion that the Proposed Acquisition is in the best interest of the Company and will enhance the earnings potential of Talam Group.
5.
FINANCIAL EFFECT
5.1
Share Capital
The Proposed Acquisition will not have any effect on the issued and paid-up share capital of Talam.
5.2
Net Tangible Assets (“NTA”), Earnings and Gearing
The Proposed Acquisition is not expected to have significant effect on the NTA, earning per share and gearing of Talam Group for the year ending 31 January 2008.
6. DIRECTORS’ RECOMMENDATION
The Board of Directors of Talam is of the opinion that the Proposed Acquisition is in the best interest of Talam.
7.
DIRECTORS AND MAJOR SHAREHOLDERS’ INTEREST
None of the directors and/or the major shareholders of Talam and/or persons connected with a director or major shareholders have any interest, direct or indirect in the Proposed Acquisition.
©
2007
, Bursa Malaysia Berhad. All Rights Reserved.