1. INTRODUCTION

Pursuant to paragraph 9.19 (23) of the Main Market Listing Requirements, the Board of Directors of Shin Yang Shipping Corporation Berhad (“SYSCORP”) is pleased to announce that Danum Shipping Sdn Bhd (“DSSB”), a 100%-owned subsidiary of SYSCorp, had on 16th July 2018, acquired additional 45,000 ordinary shares, representing 45.0% of the paid-up share capital of Sinar Asiamas Sdn Bhd (“Sinar”) from Sarawak Oil Palm Berhad (“SOPB”), for a total cash consideration of RM1.00 (“Acquisition”). 

Upon completion of the Acquisition, Sinar will become a wholly-owned subsidiary of SYSCORP

2. INFORMATION ON SINAR

Sinar was incorporated under the laws of Malaysia, as a private limited company on 13 July 2016 and its present issued and paid-up share capital is RM100,000.00 comprises of 100,000 ordinary shares of RM1.00 each.

3. RATIONAL FOR THE ACQUISITION

The principal activity of SINAR is engaging as Commercial, Technical and Shippings Managers. The Acquisition is part of SYSCorp’s plan to consolidate its shipping business to both domestic and ASEAN regions. The Acquisition would widen the network coverage and increase the presence in the ASEAN regions.

4. BASIS OF ARRIVING AT THE PURCHASE CONSIDERATION

The Acquisition at total consideration of Ringgit Malaysia One (RM1.00) only for 45,000 ordinary shares at RM1.00 each was arrived at on a willing buyer willing seller basis.

The Acquisition will be funded wholly from internally generated funds of Danum Shipping Sdn Bhd.

5. FINANCIAL EFFECTS

The Acquisition is not expected to have any material effect on the earnings per share, net assets per share, gearing, share capital and substantial shareholders’ shareholdings of the Company and SYSCORP Group for the financial year ending 30 June 2019.

6. APPROVAL REQUIRED

The Acquisition is not subject to the approval of the Shareholders of SYSCORP and/ or other relevant authorities.

7. DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

Tan Sri Datuk Ling Chiong Ho and Mr. Ling Chiong Sing are the Directors of SYSCORP, who also are the Directors of SOPB, are deemed to have an interest in the Acquisition by virtue of their common directorship and being substantial shareholders of SYSCORP and also SOPB.

Saved as disclosed above, none of the Directors, major shareholders of SYSCORP or its subsidiaries and/or persons connected with them, has any interest, direct or indirect, in the Acquisition.

8. STATEMENT BY DIRECTORS

The Board of Directors of SYSCORP, after having considered all aspects of the Acquisition, is of the opinion that the Acquisition is in the best interest of the Company and SYSCORP Group as well as fair, reasonable and on normal commercial terms and not detrimental to the interest of the minority shareholders of the Company.