INTRODUCTION

The Board of Directors of HTVB wishes to announce that on 1 September 2020, Alpine Pipe Manufacturing Sdn. Bhd. (“Alpine”), a wholly-owned subsidiary of the Company, has subscribed for 49 ordinary shares at an issue price of RM1.00 each, and representing 49% in the share capital of JAS.

DETAILS OF JAS

JAS was incorporated in Malaysia on 1 September 2020 with an issued and paid-up share capital of RM100.00 divided into 100 ordinary shares at an issue price of RM1.00 per share.  The shareholders of JAS are:

INFORMATION ON JETAMA

Incorporated in 1988, Jetama is an indirect wholly-owned company of the State Government of Sabah through Kota Kinabalu Water Sdn. Bhd., a subsidiary of Sabah Development Bhd. Jetama is the concession holder, until 2033, for the supply of treated water to Kota Kinabalu and the surrounding water supply areas of Tuaran, Penumpang and Pagar.  The issued and paid-up share capital of Jetama is RM65,800,000.00.

INFORMATION ON ALPINE

Alpine is a wholly-owned subsidiary of the Company and is principally engaged in the manufacture and sale of steel pipes, hollow sections and other steel products for a wide range of applications in the building, construction and infra-structural related sectors, water, oil and gas and the general manufacturing industries.  The issued and paid-up share capital of Alpine is RM20,000,000.00

PURPOSE OF JAS

The purpose for setting up JAS is a collaboration between Jetama and Alpine to penetrate the Sabah market for pipes and hollow sections, where Jetama has the local knowledge and Alpine will supply the products and provide the technical expertise.

SOURCES OF FUNDING

The investment of RM49.00 will be funded by internally generated funds of HTVB.

FINANCIAL EFFECT

There are no material effects to the earnings, net assets and gearing of the HTVB Group for the financial year ending 31 July 2020 arising from the investment in JAS.

INTERESTS OF DIRECTORS, MAJOR SHAREHOLDERS AND PERSONS CONNECTED WITH THEM

None of the Directors, major shareholders of HTVB and/or persons connected to them have any interest, direct or indirect, in JAS.

PERCENTAGE RATIO

The highest percentage ratio for the Company’s investment in JAS is insignificant based on the latest audited financial statements of HTVB for the financial year ended 31 July 2019.

This announcement is dated 3 September 2020.