Reference is made to our announcements dated 2 March 2020, 23 April 2020, 10 June 2020, 11 June 2020 and 15 July 2020 in relation to the Proposals (“Announcements”). Unless otherwise defined, the defined terms used in this announcement shall carry the same meaning as those defined in the Announcements.

The Board of Directors of Dancomech (“the Board”) wishes to inform that the Company and the Vendors have, today, mutually agreed to revise:

(i)        Dividend IV payable by MTL Engineering Sdn Bhd (“MTL”) to the Vendors on the Completion Date from RM5,120,000 to RM4,878,000; and
(ii)       the definition of “management accounts”, as follows:

As per the SAA dated 2 March 2020

As revised

means the balance sheet and profit and loss accounts for MTL and its subsidiary, Newexus Engineering Sdn Bhd (“Newexus”), for the preceding month prior to the Completion Date

means the balance sheet and profit and loss accounts for MTL and its subsidiary, Newexus, for the financial year ended 31 July 2020

The parties have also mutually agreed that the Vendors shall deliver the management accounts to the Company on or before 15 August 2020 or such later date as both parties may mutually agree.

Save as disclosed above, all other terms and conditions of the SAA shall remain valid and in full force.

The Board is also pleased to announce that the Proposed Acquisition has been completed today. In this regard, MTL has become a 70%-owned subsidiary of Dancomech.

This announcement is dated 3 August 2020.