KECK SENG (MALAYSIA) BERHAD ("KSM" OR "COMPANY")

REPLY TO QUERY IN RESPECT OF KSM'S ANNOUNCEMENT DATED 18 APRIL 2018.

We refer to your Company’s announcement dated 18 April 2018, in respect of the aforesaid matter.

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

1.    The following information with regard to the subscription agreement by Brosna Ltd (“Brosna”) with A2I:-

(i) Total number of shares and Tracking Preferred Equity Certificates (“TPECs”) to be issued by A2I to Brosna;

(ii) Salient terms and conditions of TPECs;

(iii) Basis and justification in arriving at the total consideration of Euro 25 million as well as further details of the fees payable; and

(iv) Percentage of interests to be held by Brosna in A2I.

2. The following information on A2I:

(i) identity of the remaining investors (together with their shareholdings) including Keck Seng Investments (Hong Kong) Ltd (“Keck Seng HK”) and Mr Ho Kian Guan, who will subscribe for shares and TPECs in A2I; and      

(ii) Principal activity of A2I and confirmation on whether the sole purpose of A2I is to raise funds purely to acquire the shares in AccorInvest and not otherwise.

3. The following information on AccorInvest:

(i) Name of directors and major shareholders together with their shareholdings;

(ii) List of major hotels and real estates owned together with their audited net book value based on the latest audited accounts;

(iii) Net assets and net profit/loss of AccorInvest based on the latest audited financial statements;

(iv) Details of valuation including the name of the valuer, date of valuation as well as the method of valuation adopted by the valuer for the valuation of the hotel properties in AccorInvest;

(v) Prospects of AccorInvest; and

(vi) To make the valuation report available for inspection.

4. Details of risks that KSM may face by venturing into the hotel and real estates in overseas market i.e. Europe.

5. Total direct and indirect shareholdings of Mr Ho Kian Guan, Mr Ho Kian Hock, Mr Ho Kian Cheong, Mr Ivan Chan Lui Ming, Mr Ho Ching Kain, Mr Ho Ching Hui  and Mr Ho Ching Tao (collectively defined as "major shareholders and directors of KSM”) in A2I and/or AccorInvest other than via KSM.

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

Yours faithfully,

HENG TECK HENG
Vice President, Issuers
Listing, Regulation
 

TGG

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