1. INTRODUCTION

The Board of Directors of CBHB wishes to announce that its wholly-owned subsidiary, Crest Builder International Sdn.Bhd.[Registration no. 200401005938 (644441-T)](“CBISB”) had on 27 May 2021 acquired an additional 49% equity interest in its subsidiary company, Intan Sekitar Sdn. Bhd. [Registration no. 201201011546 (985063-T)] (“ISSB”) comprising 122,500 ordinary shares (“ISSB Shares”) from Detik Utuh Sdn Bhd [Registration no. 200401005938 (644441-T)] for a cash consideration of RM122,500.00 (Ringgit Malaysia: One Hundred Twenty Two Thousand and Five Hundred) only (“Acquisition”).

2. DETAILS OF THE ACQUISITION

2.1 Information of ISSB

ISSB was incorporated in Malaysia on 3 April 2012, having its registered address at 62-2, Jalan 2A/27A, Section 1, Wangsa Maju, 53300 Kuala Lumpur.

The issued share capital of ISSB is RM250,000.00 comprising 250,000 ordinary shares.

ISSB is principally engaged in property investment and property development.

2.2 Information on the CBISB

CBISB was incorporated in Malaysia on 4 March 2004, having its registered address at 62-2, Jalan 2A/27A, Section 1, Wangsa Maju, 53300 Kuala Lumpur.

The issued share capital of CBISB is RM2.00 comprising 2 ordinary shares.

CBISB is principally engaged in investment holding.

CBISB is a wholly-owned subsidiary of CBHB.

As at the financial year ended 31 December 2020, CBISB owns 51% equity interest in ISSB. Upon completion of the Acquisition, ISSB becomes a wholly-owned subsidiary of CBISB.

2.3 Liabilities to be Assumed

The ISSB Shares acquired pursuant to the Acquisition were acquired free and clear of all liens, charges and claim of any kind of restrictions whatsoever in nature and ranked pari passu in all respect with the existing shares of ISSB.

CBHB is not expected to assume any liabilities, including contingent liabilities and guarantees arising from the Acquisition.

2.4 Source of funding

The Acquisition was funded by internal generated funds.

3. BASIS AND JUSTIFICATION FOR ARRIVING AT THE PURCHASE CONSIDERATION

The purchase consideration for ISSB Shares selling prices is determined on a willing-buyer-willing-seller basis.

4. FINANCIAL EFFECTS

4.1 Share capital and shareholdings of the substantial shareholders

The Acquisition will not have any effect on the issued share capital of CBHB and substantial shareholders’ shareholdings.

4.2 Net Assets (“NA”) and NA per share

The Acquisition is not expected to have any material effect on the NA and NA per share of CBHB Group for the financial year ending 31 December 2021.

4.3 Earnings and earnings per share

The Acquisition is not expected to have any material effect on the earnings and earnings per share of the Company for the financial year ending 31 December 2021.

4.4 Gearing

The Acquisition does not have any material effect on the gearing of CBHB Group for the financial year ending 31 December 2021.

5. APPROVALS REQUIRED

The Acquisition is not subject to the approval of shareholders of CBHB or any relevant government authorities.

6. DIRECTORS’ AND MAJOR SHAREHOLDERS’ AND/OR PERSON CONNECTED WITH A DIRECTOR OR MAJOR SHAREHOLDER’S INTERESTS

None of the Directors and/or major shareholders of the CBHB and/or persons connected to them, has any interest, direct or indirect, in the Acquisition.

7. RATIONALE FOR THE ACQUISITION

The Acquisition enabled CBISB to wholly own ISSB which will facilitate CBHB Group’s  strategy to strengthen its future earnings base and enhance its cash flow arising from its forthcoming property development project.

8. STATEMENT BY THE BOARD OF DIRECTORS

The Board of Directors of the CBHB, having considered all aspects of the Acquisition, including but not limited to the basis of the purchase consideration, rationale, prospects and financial effects of the Acquisition, is of the opinion that the Acquisition is:

• in the best interest of the CBHB,

• fair, reasonable and on normal commercial terms

9. RISK FACTORS

Save for the normal business risk, changes in political, economic and regulatory conditions in Malaysia and financing risk, the Board of Directors of CBHB is unaware of any risk arising from the Acquisition which could materially or adversely affect the financial and operation conditions of CBHB Group.

This announcement is dated 27 May 2021.