MELEWAR INDUSTRIAL GROUP BERHAD ("MIGB" or "the Company")
 PROPOSED DISPOSAL OF 69,022,201 ORDINARY SHARES AND 2,000 REDEEMABLE PREFERENCE 
 SHARES REPRESENTING 100% SHARES IN MELEWAR INTEGRATED ENGINEERING SDN BHD ("MIE")

 - REPLY TO QUERY FROM BURSA MALAYSIA SECURITIES BERHAD ("BURSA SECURITIES") DATED 18 
 AUGUST 2020

We refer to your Company’s announcement dated 14 August 2020 in respect of the aforesaid matter.

In this connection, kindly furnish Bursa Securities with the following additional information for public release:-

1)    the background of MIE including assets owned and financial information for the last 3 financial years together with commentaries on the results.

2)    basis of arriving at the disposal consideration of RM750,000.

3)    justifications for the disposal consideration of RM750,000.

4)    the computation to arrive at the negative shareholders’ funds of RM4.3 million as at 31 July 2020 based on the latest audited financial statements of MIE.

5)    the original cost of investment and date of investment in MIE.

6)    whether any guarantee given by Melewar Industrial Group Berhad Group to the Purchaser or MIE, or to incorporate an appropriate negative statement.

7)    the salient terms and conditions of the Share Sale Agreement.

8)    brief details of the Terengganu Silica Project and the impact of the failure to secure closure of the project on the Group.

9)    the computation to arrive at the expected gain of approximately RM5 million.

10)  whether the disposal consideration have been paid.

Please furnish Bursa Securities with your reply within one (1) market day from the date hereof.

Yours faithfully,

Listing  
Regulation

c.c.: Market Surveillance Dept., Securities Commission (via fax)