| Contents | Further to the Company’s announcement on 15 September 2009 in respect of the Proposed Acquisition, the Board of Directors of FCW wishes to inform the following:-
1. Additional Information on Coscolab
Coscolab is in the business of manufacturing and trading of cosmetics and toiletries products. The range of products manufactured by Coscolab for its customers includes personal care, skin care, hair care, hair colour and household products under the following brand names:-
Leivy, Ivy, Natifa, Skin Sense, Tracia, Shurah, Forum, Follow Me, Nutox, Nano White, Secret, Everyday, A’laisyah, Rainna, Uber-man, Sence, CNI and Tupperclean.
2. Prospect of the Asset/Interest to be Acquired
The prospect of the Industry of personal care, skin care, hair care, hair colour and household products (“Products”) is favourable premised on the continual product innovation, increasing younger age groups population, urbanization, increasing overall demand and ever-changing consumer trends and preferences for the Products, which are the drivers of growth for the business of Coscolab.
3. Revised Highest Percentage Ratio Applicable to the Proposed Acquisition
The revised highest percentage ratio applicable to the Proposed Acquisition pursuant to paragraph 10.03(5) of the Main Market Listing Requirement is 6.94%, which was derived based on the total Purchase Consideration of RM6.3 million plus RM2.1 million (Option Price) after taking into account the potential exercise of the Call and Put Option, compared with the net assets of FCW Group of RM121.054 million as at 30 June 2008.
4. Basis of Arriving at the Option Price
The Option Price of RM2.1 million was derived based on the net asset value of Coscolab as at 31 December 2008 and potential future earnings of Coscolab. |