Unless otherwise stated, all capitalised terms set out herein shall have the same meanings as those set out in the Announcements dated 16 January 2020.

Further to the announcement dated 16 January 2020 (Reference No. GA1-16012020-00122), the Board wishes to disclose additional information in relation to the Proposed Acquisition as follows:

(1)  Basis and Justification on arriving at the Consideration

The Total Consideration of RM7,840,500.00 was arrived at on a willing buyer willing seller basis, at RM75.00 per square foot, after taking into consideration the current indicative market value of lands as well as the prevailing real estate sentiments in the surrounding vicinity of the Land. The Board has compared the Consideration with the current listing of lands for sale in the surrounding area as well as the offers from interested buyers for the other lands of the Group which are situated opposite the Land. The Land is a heavy industrial land which is in growing demand in the market as there is no restriction in use.

(2)   Rationale of the Acquisition

The Proposed Acquisition is in line with the ongoing plan of the Group, that is to construct warehouses or factories on the Land for renting to third parties.  The Land is just opposite the existing four parcels of lands of the Group of which construction of factories are currently in progress.  The location of the Land is strategic to the Group either offering as expansion to the factories currently under construction or for renting to third parties and management wise would be easier and more efficient too.

This announcement is dated 20 January 2020.