PROPOSED ACQUISITION OF A BUILDING (PROPERTY) BY THE COMPANY'S SUBSIDIARY, ARES GREEN TECHNOLOGY CORPORATION (AGTC) FOR A TOTAL PURCHASE PRICE OF NEW TAIWAN DOLLAR (NTD) 367.50 MILLION OR RM53.29 MILLION ("PROPOSED ACQUISITION")
| FRONTKEN CORPORATION BERHAD |
| Type | Reply to Query |
| Reply to Bursa Malaysia's Query Letter - Reference ID | IQL-08042021-00001 |
| Subject | PROPOSED ACQUISITION OF A BUILDING (PROPERTY) BY THE COMPANY'S SUBSIDIARY, ARES GREEN TECHNOLOGY CORPORATION (AGTC) FOR A TOTAL PURCHASE PRICE OF NEW TAIWAN DOLLAR (NTD) 367.50 MILLION OR RM53.29 MILLION ("PROPOSED ACQUISITION") |
| Description | REPLY TO QUERIES FROM BURSA SECURITIES MALAYSIA BERHAD ("BURSA SECURITIES") IN RESPECT OF THE PROPERTY |
| Query Letter Contents | We refer to your Company’s announcement dated 6 April 2021, in respect of the aforesaid matter.
In this connection, kindly furnish Bursa Securities with the following additional information for public release:-
1. The age of the Property. 2. The expiry date of the lease on the land on which the Property is erected. 3. The net book value of the Property appearing in the Vendor’s latest audited financial statements. 4. The method of valuation adopted by the valuer in valuing the Property. 5. The proposed use of the Property.
Please furnish Bursa Securities with your reply within one (1) market day from the date hereof.
Yours faithfully,
REGULATION
Cc : Market Surveillance Dept. , Securities Commission (via fax) |
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The Board of Directors of Frontken Corporation Bhd is pleased to reply to the letter from Bursa Securities dated 8 April 2021 as follows:-
1. The age of the Property. As mentioned in paragraph 2.1 of our announcement, the Property was built in 2014 and is now 7 years old.
2. The expiry date of the lease on the land on which the Property is erected. The lease will be expiring on 15 January 2032. However, as mentioned in paragraph 2.3.3 of our announcement, it is a condition precedent to the purchase that we obtain approval from the Southern Taiwan Science Park Bureau for a new lease of 20 years from 2021.
3. The net book value of the Property appearing in the Vendor’s latest audited financial statements. The information is not available as the Vendor declines to provide the same to us. Further, under the laws of Taiwan, (R.O.C), the Vendor is not required to submit its audited financial statements with any statutory bodies to enable us to undertake a search of the same.
4. The method of valuation adopted by the valuer in valuing the Property. Costing method and Comparison method.
5. The proposed use of the Property. As mentioned in paragraph 4 of our announcement, the Property is intended to be used as our new production facility in anticipation of increase in the demand for our services relating to tools and parts used in the production of our customers’ latest leading edge chips/wafers. |
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Announcement Info
| Company Name | FRONTKEN CORPORATION BERHAD |
| Stock Name | FRONTKN |
| Date Announced | 09 Apr 2021 |
| Category | General Announcement for PLC |
| Reference Number | GA1-08042021-00136 |