1.  INTRODUCTION

The Board of Directors of SIB is pleased to announce that the Company has on 25 August 2020 entered into a Memorandum of Understanding (“MOU”) with MMT Automotive Co., Ltd. (“MMT”) with a view of seeking partnering opportunity including but not limited to mutually beneficial strategic alliances in Projects targeted by both Parties. 

2.  INFORMATION ON SIB

SIB is a company incorporated in Malaysia with its registered office at Lot 2 & 4, Jalan P/11, Seksyen 10, Kawasan Perindustrian Bangi, 43650 Bandar Baru Bangi, Selangor Darul Ehsan. The nature of business of SIB is an investment holding company and provision of management services to its subsidiaries. The principal activities of its subsidiaries are in automotive component manufacturing. 

3.  INFORMATION ON MMT

MMT Automotive Co., Ltd., is a company incorporated in South Korea with its registered office at 15 Seongseogongdanbuk-Ro, 18-Gil, Dalseo-Gu, Daegu South Korea and is involved in precision machining & assembly for automotive, aerospace and industrial markets. 

4.  SALIENT TERMS OF THE MOU

4.1  Purpose of the MOU

The purpose of the MOU is to set out the intention of the Parties to jointly examine and evaluate the possibility and feasibility of the Projects targeted by the parties, namely, manufacturing of trailer components, forged blanks gear for automotive transmission and aerospace components, mainly for export market.

The Parties agree that upon satisfaction of the above, shall enter into a formal definitive written agreements for the Projects, to set out the final terms of their respective rights, responsibilities and obligations, including the expected result and outcome of the Projects. 

4.2  Duration

The MOU shall be in effect and shall remain in force for a period of one year from the date of the MOU, unless terminated earlier by either Party giving thirty (30) days’ prior written notice to the other Party.

5.   RATIONALE OF THE MOU

The MOU allows the Parties to lay the foundation of evaluating and negotiating the potential business collaboration relating to the Projects to harness our manufacturing capabilities with the objective to grow our customer base and to expand the business of our group. 

6.  APPROVAL REQUIRED 

The execution of the MOU is not subject to the approval of the shareholders of SIB or any relevant regulatory authorities.

7.   INTERESTS OF DIRECTORS AND/OR MAJOR SHAREHOLDERS AND/OR PERSONS CONNECTED TO DIRECTORS OR MAJOR SHAREHOLDERS

None of the Directors and/or major shareholders of SIB and/or person connected with a Director or major shareholder of SIB have any interest, direct or indirect in the MOU. 

This announcement is dated  25 August 2020