1. The Board of Directors (“Board”) of REDtone wishes to announce that REDtone had acquired the following listed shares in the open market during the period from 4 December 2019 to 11 December 2019 for a total cash consideration of approximately RM1.97 million (“Acquisitions”):-

i) 700,000 ordinary shares (“BFood Shares”) representing about 0.20% equity interest in Berjaya Food Berhad (“BFood”) for a total cash consideration of about RM0.97 million or at an average purchase price of RM1.38 per BFood Share; and

ii) 700,000 ordinary shares (“SEM Shares”) representing about 0.06% equity interest in 7-Eleven Malaysia Holdings Berhad (“SEM”) for a total cash consideration of about RM1.00 million or at an average purchase price of RM1.43 per SEM Share.

BFood Shares and SEM Shares are collectively referred to as the “Listed Shares”.

2. The cash considerations of the Acquisitions were at the prevailing market prices of the Listed Shares at the time of acquisitions. The Listed Shares were acquired free and clear of all liens, charges and claims of any kind or restriction together with all rights attached thereto.

3. The Acquisitions were funded from internal funds of the REDtone Group. There are no liabilities to be assumed by REDtone arising from the Acquisitions. The Acquisitions represented an opportunity for the REDtone Group to invest in BFood and SEM with its internal funds.

4. The Acquisitions have no effect on the issued share capital or substantial shareholders’ shareholdings of REDtone. The Acquisitions are not expected to have any material effect on the net assets, earnings and gearing of the REDtone Group for the current financial year ending 30 June 2020.

5. The Acquisitions are not subject to the approval of the shareholders of REDtone or any regulatory authority.

6. Berjaya Corporation Berhad is a major shareholder of REDtone and BFood.

Tan Sri Dato’ Seri Vincent Tan Chee Yioun is a major shareholder of REDtone, BFood and SEM.

Mr. Ho Meng, who has resigned as a Director of REDtone and SEM on 24 October 2019 respectively, was an Executive Director of REDtone and SEM within the preceding six (6) months of the date on which the terms of the Acquisitions were agreed.

Save as disclosed above, none of the other Directors and major shareholders of REDtone or persons connected to them has any interest, direct or indirect, in the Acquisitions.

7. The Board of REDtone is of the opinion that the Acquisitions are in the best interest of the REDtone Group.

The Audit Committee of REDtone is of the opinion that the Acquisitions are fair, reasonable and on normal commercial terms and are in the best interest of the REDtone Group. In addition, the Audit Committee of REDtone is also of the view that the Acquisitions are not detrimental to the interest of the minority shareholders of REDtone.

8. The highest percentage ratios applicable to the Acquisitions pursuant to Rule 10.02(g) of Bursa Malaysia Securities Berhad’s ACE Market Listing Requirements are as follows:-

This Announcement is dated 12 December 2019.