SOP

3.080

-0.02 (-0.6%)

OTHERS Announcement on Equity Investment through Wholly Owned Subsidiary

SARAWAK OIL PALMS BERHAD

Type Announcement
Subject OTHERS
Description
Announcement  on Equity Investment through Wholly Owned Subsidiary

 

1.         Introduction

 

The Board of Directors of Sarawak Oil Palms Berhad (“SOPB” or “Company”) wishes to announce that Asia Oils Investment Pte Ltd (“AOIPL”), its wholly owned subsidiary of the Company had on 13 March 2020 subscribed 200,000 non-cumulative and non-convertible preference shares of USD1.00 each (“Subscriptions of Shares”) in Seaworth Pte Ltd, a joint venture company.

 

2.         Information on Seaworth Pte Ltd (“SW”)

 

Seaworth Pte Ltd was incorporated under the laws of Singapore, as a private limited company on 23 January 2019. The present share capital of SW consists of 8,000,000 ordinary share of USD1.00 each and 11,050,000 non-cumulative and non-convertible preference share of USD1.00 each before the above Subscriptions of Shares.

 

The shareholders of Seaworth Pte Ltd are JJ Rhema Pte Ltd and Asia Oils Investment Pte Ltd holding 50% each of the share capital of SW.

 

Directors of SW are

  1. Tan Sri Datuk Ling Chiong Ho              
  2. Wong Hee Kwong
  3. Ling Lu Kuang
  4. Ling Lu Kiong

 

3.         Rationale for the Subscription of Shares

 

The Subscription of Shares would enable SOPB (through AOIPL, its wholly owned subsidiary) to participate as a partner in the shipping business and to provide logistical support to SOPB Group palm oil business.

 

4.         Basis of Arriving at the Subscription of Shares

 

The Subscription of Shares’ consideration of USD1.00 each was arrived at the mutual agreement between the shareholders.

 

5.         Financial Effects

 

The Subscription of Shares 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 SOPB Group for the financial year ending 31 December 2020.

 

6.         Approval Required

 

The Subscription of Shares is not subject to the approval of the Shareholders of SOPB and/or other relevant authorities.

 

 

 

7.         Interest of Directors, Major Shareholders and/or persons connected to them.

 

  1. Tan Sri Datuk Ling Chiong Ho (“TSDLCH”) is the Group Executive Chairman, a Director of SOPB (including AOIPL and SW) and a major Shareholder of SOPB. He is deemed interested in the Subscription of Shares being he is the father of Ling Lu Kuang.

 

  1. Ling Chiong Sing is the Non-Executive Director of SOPB. He is also deemed interested in the Subscription of Shares being he is the brother to TSDLC and uncle of Ling Lu Kuang.

 

  1. Ling Lu Kuang is the Non-Executive Director of SOPB. Ling Lu Kuang is a representative of Shin Yang Group. He is also deemed interested in the Subscription of Shares as he is a director of AOIPL, SW, the son of TSDLCH and nephew of Ling Chiong Sing.

 

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

 

8.         Statement by Audit Committee

           

The Audit Committee of SOPB after having considered all aspects of the Subscription of Shares, is of the opinion that the Subscription of Shares is :

 

  1. in the best interests of the Company and the Group
  2. Fair, reasonable and on normal commercial terms; and
  3. Not detrimental to the interest of the minority shareholders.

 

9.         Statement by Directors

 

The Board of Directors of SOPB (except Tan Sri Datuk Ling Chiong Ho, Ling Chiong Sing, Ling Lu Kuang), after having considered all aspects of the Subscription of Shares, is of the opinion that the Subscription of Shares is in the best interest of the Company and SOPB Group as well as fair, reasonable and on normal commercial terms and not detrimental to the interest of the minority shareholders of the Company.






Announcement Info

Company Name SARAWAK OIL PALMS BERHAD
Stock Name SOP
Date Announced 16 Mar 2020
Category General Announcement for PLC
Reference Number GA1-13032020-00056