1.         INTRODUCTION

Eversendai Corporation Berhad (the “Company”) wishes to announce that its wholly-owned subsidiary, Eversendai Construction (S) Pte. Ltd. (“ECSPL”) had, on 22 September 2020, entered into a Share Sale Agreement (the “Agreement”) for the disposal of 40,000 ordinary shares (“Class B shares”) and 10,000 preference shares (“Class D shares”) in S-Con which represents 49.5% of the issued and paid up share capital in S-Con (“Proposed Disposal”).

Upon completion of the Proposed Disposal, S-Con shall cease to be a subsidiary of the ECSPL.

2.         INFORMATION OF S-CON

S-Con was incorporated on 30 December 1992 in Thailand and currently has an authorized share capital of THB10,100,000.00 million comprising of 101,000 shares of THB100.00 each which have been issued and fully paid-up.

S-Con’s principal activity is in the business of steel fabrication and installation.

3.         RATIONALE OF THE PROPOSED DISPOSAL

ECSPL has decided to dispose its shares in S-Con due to lack of opportunities in Thailand resulting from the difficult business environment and to reduce possible adverse effects in the operation of Eversendai and its group of companies.

4.         FINANCIAL EFFECTS

4.1         Issued share capital, substantial shareholders’ shareholdings, net assets and gearing

The Proposed Disposal will not have any effect on the issued share capital and the shareholdings of the substantial shareholders of the Company as the Proposed Disposal does not involve any issuance of new ordinary shares of the Company.

The Proposed Disposal is not expected to have any material effect on the net assets and gearing of Eversendai Group.

4.2         Earnings and earnings per share (“EPS”)

Upon completion of the Proposed Disposal, Eversendai Group expects to realise an estimated net gain on disposal of approximately RM3.9 million. 

5.         DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

None of the directors and/or major shareholders in the Company and/or persons connected to them have any interest, direct or indirect, in the Proposed Disposal.

6.         DIRECTORS’ STATEMENT

The Board of Directors of the Company, having considered all the relevant factors in respect of the Proposed Disposal, is of the opinion that the Proposed Disposal is in the best interest of the Company.

This announcement is dated 24 September 2020.