General Announcement   Reference No TC-050408-62328

Company Name	:	TALAM CORPORATION BERHAD
Stock Name	:	TALAM
Date Announced	:	08/04/2005

Type	:	Announcement
Subject	:	TALAM CORPORATION BERHAD ("Talam" or "the Company) 1. Memorandum of Agreement between IJM Properties Sdn Bhd ("IJMP"), Terang Tanah Sdn Bhd and Star Base Sdn Bhd to jointly develop a parcel of land in Mukim Ulu Kelang, Selangor Darul Ehsan; and 2. Agreement between IJMP and Expand Factor Sdn Bhd to acquire three (3) parcels of land in Mukim Petaling, Selangor Darul Ehsan

Contents :

1. Memorandum of Agreement between IJM Properties Sdn Bhd ("IJMP"), Terang Tanah Sdn Bhd and Star Base Sdn Bhd to jointly develop a parcel of land in Mukim Ulu Kelang, Selangor Darul Ehsan

A Memorandum of Agreement was signed today between IJM Properties Sdn Bhd ("IJMP"), Terang Tanah Sdn Bhd ("TTSB") and Star Base Sdn Bhd ("SBSB") to jointly develop a parcel of land, measuring approximately 90 acres, held under Pajakan Negeri 7358 Lot 15687, Mukim Ulu Kelang, Daerah Gombak, Selangor Darul Ehsan ("Project Land"). SBSB is the registered owner of the Project Land.

IJMP and TTSB will enter into a 50:50 joint venture agreement to jointly develop the Project Land with SBSB. IJMP and TTSB had paid in equal share a deposit of RM16 million to SBSB, and will pay up to RM80 million for the Project Land in the course of its development.

The Project Land is proposed to be developed into a mixed development over a period of five (5) years with an estimated Gross Sales Value of RM408 million.

2. Agreement between IJMP and Expand Factor Sdn Bhd ("EFSB") to acquire three (3) parcels of land in Mukim Petaling, Selangor Darul Ehsan

Another Agreement was signed today between IJMP and EFSB to acquire three (3) parcels of land measuring approximately 43.03 acres, which formed part of a parcel of land held under HS(D) 143296 PT 50610, Mukim Petaling, Daerah Petaling, Selangor Darul Ehsan and measuring approximately 122.64 acres, for a consideration of RM33 million.

IJMP had paid a deposit of RM6.6 million to EFSB, with the balance to be paid upon receipt of the approvals from the Foreign Investment Committee and State Authority, according to the agreed schedule of payments.

EFSB will be entitled to a 30% profit entitlement (based on an agreed formula) from the development of the land; referred to as Phase 6 (6.96 acres), Phase 11 (19.56 acres) and Phase 12 (16.51 acres).

IJMP intends to develop the land into a residential development over a period of three (3) to four (4) years with an estimated Gross Sales Value of RM193 million.

TTSB and EFSB are 100% subsidiaries and SBSB is a 90% subsidiary of Talam. IJMP is a 100% subsidiary of IJM Corporation Berhad.

The participation of IJMP in the transactions is subject to the completion of the due diligence exercise.

None of the Directors nor substantial shareholders of the Company, or persons connected with them, has any interest, direct or indirect, in the transactions. The transactions will not have any significant effect on the earnings or net tangible assets per share of the Company for the financial year ending 31 January 2006.




 

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