Further to the Company’s announcement on 9 July 2020 regarding the Proposed Disposal by its indirect 65%-owned subsidiary, Posthotel Arosa AG (“Seller”), for a cash consideration of Five Million Nine Hundred and Fifty Thousand Swiss Francs (CHF5.95 million)(equivalent to RM26.768 million), the Board of Directors of ASB wishes to set out below further details on the proposed utilisation of proceeds from the Proposed Disposal.

The proceeds from the Proposed Disposal are intended to be utilised to finance the working capital of ASB and its subsidiaries (collectively, “Group”) and expenses in relation to the Proposed Disposal as set out below:-

Notes:-

(1)        The proceeds shall be utilised for amongst others, the working capital of the Seller and its subsidiary, 57-59 Philbeach Gardens Limited, which owns a hotel property in London (“Hotel”). The Hotel is currently under renovation and is scheduled for opening in the second half of 2021. The Proposed Disposal proceeds of approximately CHF4.80 million will be utilised for the renovation of the Hotel, professional fees relating to the renovation, furnishing and fit-outs, pre-operating expenses and working capital to fund the daily operations of the Hotel and approximately CHF0.50 million will be utilised by the Seller for its operating expenses which include professional fees, tax and administration cost.

(2)        Estimated expenses mainly comprise tax, legal fees and other related expenses. Any shortfall or excess in the funds allocated for estimated expenses will be funded from or used for working capital of the Group.

In the event that the Proposed Disposal could not be completed, our Group would utilise its internally generated resources and/or alternative method of funding to implement any of the proposed activities as stated above.

The actual utilisation has not been determined at this juncture and may differ at the time of utilisation. The expected timeframe for utilisation of proceeds is within 24 months from the completion of the Proposed Disposal.

This announcement is dated 16 July 2020.