We refer to the Company’s announcements dated 3 July 2018, 30 August 2018, 13 September 2018, 20 September 2018, 1 November 2018, 12 March 2019, 11 June 2019, 11 July 2019, 9 August 2019, 10 September 2019, 20 November 2019, 29 November 2019, 12 December 2019 and 27 July 2020 in relation to the Proposed Expansion into Flat Steel Business (collectively, “Announcements”). Unless otherwise stated, abbreviations and definitions used throughout this announcement shall have the same meaning as those previously defined in the Announcements.

On behalf of the Board, TA Securities wishes to announce the Company had been informed by Megasteel vide its letter dated 30 July 2020 on the following: -

(a) the Proposed Acquisition of Encumbered Assets has been completed on 30 July 2020, being the Settlement Date (Secured Scheme) whereby, inter alia, the Security Trustee had released the upfront payment of RM84.00 million to each of the Megasteel Secured Lenders in accordance with the Security Trustee Trust Agreement and the legal ownership of the Encumbered Assets together with the Secomex rights and benefits have been transferred to Cendana Aset; and

(b) the Proposed Acquisition of MS Promissory Note has been completed on 30 July 2020, being the Settlement Date (Secured Scheme) whereby, the Security Trustee had released the Purchase Consideration for MS Promissory Note of RM8.50 million to each of the Megasteel Secured Lenders in accordance with the Security Trustee Trust Agreement and the right, title and interest under MS Promissory Note which was duly signed and dated by the Security Trustee on Settlement Date (Secured Scheme) has been transferred to Gelora Berkat.

The sum of RM92.50 million was deposited with the Security Trustee on 25 July 2019 and the interest accrued in relation thereto of approximately RM2.75 million was also released by the Security Trustee to each of the Megasteel Secured Lenders on 30 July 2020 to reduce the Termed Payment(s) in chronological order under the Proposed Acquisition of Encumbered Assets.

This announcement is dated 30 July 2020.