JIANKUN INTERNATIONAL BERHAD (JKI OR THE COMPANY)
- JOINT VENTURE AGREEMENT BETWEEN JKI, MENARA REZEKI SDN BHD AND MENARA REZEKI PROPERTIES SDN. BHD.

We refer to your Company’s announcement dated 16 June 2022, in respect of the aforesaid matter.

In this connection, kindly furnish Bursa Securities with the following additional information for public release:-

1) It is noted that your Company had on 26 January 2022 entered into a similar JVA with the same parties which was subsequently terminated on 21 March 2022.

In this regard, please tabulate and highlight the differences between the JVA announced on 26 January 2022 and the current JVA announced on 16 June 2022 and to provide clarification on the reason as to why the Company decides to embark on the current JVA.

2) Roles and responsibilities as well as the scope of works by Jiankun, MRSB and MRPSB in the JVA.

3) Given that the JV between Jiankun and MRSB is based on a 70:30 basis, please explain –

a) the rationale for the JVC’s Board structure to consist of a maximum of 4 Directors (including the Chairman), with 2 Directors to be nominated by MRSB and 2 Directors to be nominated by JKI; and

b) how would the issue of casting vote be dealt with in the event of any disagreement or equality of vote.

4) It is noted that the principal activity for both MRSB and MRPSB is in construction activities, please provide information on:

a) the major project(s) undertaken by both the companies in the past 5 years including the contract value and the completion date; and

b) summary of financial information of both the companies for the past 3 financial years.

5)  Additional information of the mixed residential and retail development pursuant to Item 4, Part C, Appendix 10A of Main Market Listing Requirements of Bursa Securities (“LR”)

6) It is noted from the previous JVA that Dato’ Saiful Nizam had executed a Personal Guarantee (“PG”). Please confirm whether similar PG will also be executed under the current JVA.   

7) It is disclosed that Jiankun have agreed to advance RM14.3 million for the Project (“Provision of Advances”). In view that the Project involves the interests of the director of Jiankun, please provide further disclosure of the Provision of Advances in compliance with Paragraph 10.08 of the LR.

8) Disclose the purpose and how the Provision of Advances is to be given under the JVA.

9) To recompute the percentage ratio in accordance with Paragraph 10.02(g) of LR by taking into consideration the quantum of Provision of Advances and state clearly whether the JVA is subject to shareholders approval.  

Please furnish Bursa Securities with your reply within one (1) market day from the date hereof.

Yours faithfully,

Listing Division

Regulation

Cc : Market Surveillance Dept. , Securities Commission