1. INTRODUCTION
Pursuant to Rule 9.19(25) of Bursa Malaysia Securities Berhad's ACE Market Listing Requirements, the Board of Directors of SCBUILD/0109 wishes to announce that the Company has entered into a Share Sale Agreement (“SSA”) for the disposal of 17,500,000 ordinary shares, representing 100% equity interest held in Flonic Advance Sdn. Bhd. (Company No. 572849-T) (“FASB”) to Cik Nurfaiza Binti Ismail for a total cash consideration of RM50,000/- (Ringgit Malaysia: Fifty Thousand) only ("the Disposal").
The Disposal has been completed on 5 March 2019. Consequent thereto, FASB has ceased to be a wholly-owned subsidiary of the Company.
2. INFORMATION OF FASB
FASB was incorporated in Malaysia as a private limited company under the repealed Companies Act, 1965 on 5 March 2002 and having its registered office at Level 7, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, Damansara Heights, 50490 Kuala Lumpur, Wilayah Persekutuan.
FASB is a wholly-owned subsidiary of the Company. The total issued share capital of FASB is RM17,500,000/- comprising 17,500,000 ordinary shares as at the date of the SSA.
FASB is principally involved in designing and manufacturing of precision cleaning system, expanded metal and turbine ventilator.
3. RATIONALE FOR THE DISPOSAL
In view that FASB is a loss-making entity, the Disposal is to streamline the operations of SCBUILD/0109 and its group of companies (“the Group”) to focus on core profitable operations while disposing a loss-making business unit which is affecting the Group’s operations and financial results.
4. FINANCIAL EFFECTS
The Disposal of FASB is not expected to have any material effects on the earnings or net assets of the Company for the financial year ending 31 January 2020.
5. DIRECTORS’ AND MAJOR SHAREHOLDERS’ AND/OR PERSONS CONNECTED WITH A DIRECTOR OR MAJOR SHAREHOLDER’S INTERESTS
None of the directors, major shareholders of SCBUILD/0109 and/or persons connected with them have any interest, direct or indirect, in the Disposal.
6. STATEMENT BY THE BOARD OF DIRECTORS
The Board of Directors of SCBUILD/0109, after having considered all aspects of the Disposal, is of the opinion that the Disposal is in the best interest of the Company.
This announcement is dated 6 March 2019.