INTRODUCTION

The Board of Directors of Ranhill is pleased to announce that the Company had on 2 December 2020 received a letter from Minister of Finance, Incorporated ("MOF Inc") inviting the Company to undertake a due diligence exercise on Indah Water Konsortium Sdn Bhd ("IWK") for the proposed disposal by Minister of Finance, Incorporated ("MOF Inc") of its interest in IWK ("Proposal"). Prokhas, a private limited company wholly-owned by MOF Inc was appointed by MOF Inc to represent MOF Inc as its consultant for the Proposal.

INFORMATION ON THE INVITATION

The Company had on 26 June 2020, submitted a proposal for a restructuring of IWK that will involve, among others, the disposal by MOF Inc of its interest in IWK to the Company. The invitation from Prokhas for the Company to undertake a due diligence exercise will enable the Company to have access to information that is necessary for the Company to finalise the proposal to MOF Inc.

FINANCIAL EFFECTS OF THE DUE DILIGENCE ON THE PROPOSAL

The due diligence exercise for the Proposal will not have any material effect on the earnings, net assets and gearing of Ranhill for the current financial year ending 31 December 2020.

The due diligence exercise will not affect the issued and paid-up share capital and the substantial shareholders’ shareholdings of Ranhill.

DIRECTORS AND MAJOR SHAREHOLDERS’ INTEREST

None of the Directors, substantial shareholders of the Company and persons connected to them has any interest, direct and/or indirect, in the Proposal.

STATEMENT BY DIRECTORS

The Board, having taken into consideration all aspects of the Proposal is of the opinion that it is in the best interest of Ranhill.

APPROVALS  REQUIRED

The due diligence exercise is not subject to any approval from the authorities. However, should the Company decides to execute the Proposal, the Company shall adhere to the requirements of all laws and regulations including the requirements under the Bursa Malaysia's Main Market Listing Requirements.

This announcement is dated 2 December 2020.