The Board of Directors of GENM wishes to announce that E-Genting Holdings Sdn Bhd (“EGHSB”), a direct wholly-owned subsidiary of GENM, has on 31 July 2017 entered into a Share Purchase Agreement with RW Tech Labs Sdn Bhd (“RW Tech Labs”) to dispose of its entire equity interest in E-Genting Sdn Bhd (“EGSB”) for a total cash consideration of RM3 million (“Disposal”). 

EGSB, a wholly-owned subsidiary of EGHSB, is principally involved in research in software development, and provision of information technology and consultancy services.

RW Tech Labs, a company incorporated in Malaysia, is principally involved in provision of management services.

EGSB is considered a non-core asset for GENM Group. The Disposal allows GENM Group to further streamline and focus on its core operations in the leisure and hospitality industry.

Save as disclosed below, none of the Directors and/or major shareholders of the Company and/or persons connected to them has any interest, direct or indirect, in the Disposal:

1. Tan Sri Lim Kok Thay (“TSLKT”) is a director, shareholder and a holder of the rights to participate in the performance shares of GENM. He is also a director, shareholder and warrant holder of Genting Berhad (“GENT”), which in turn owns 49.32% equity interest of GENM. RW Tech Labs is a wholly-owned subsidiary of Resorts World Inc Pte Ltd (“RWI”), which in turn is a 50:50 joint venture company of Genting Intellectual Property Pte Ltd (“GIP”) and KHRV Limited (“KHRV”). GIP is a wholly-owned subsidiary of GENT. KHRV is wholly-owned by TSLKT. TSLKT is also a director of KHRV.  TSLKT has deemed interest in RW Tech Labs through KHRV and GENT.
2. Mr Lim Keong Hui (“LKH”), a son of TSLKT, is a director of GENM and GENT. He is also a shareholder and a holder of the rights to participate in the performance shares of GENM. LKH has deemed interest in RW Tech Labs through GENT. He is also a director and President of RWI and a director of RW Tech Labs.

TSLKT is a director of Kien Huat Realty Sdn Berhad (“KHR”), Kien Huat International Limited (“KHIL”) and Parkview Management Sdn Bhd (“Parkview”), all of which are major shareholders of GENM and GENT. LKH is a director of KHR and KHIL. Both TSLKT and LKH have deemed interests in KHR and KHIL by virtue of being beneficiaries of a discretionary trust which owns non-voting preference shares in KHR and the ordinary shares in KHIL.

GENM Group is expected to realise a gain arising from the Proposed Disposal. For illustrative purposes, based on GENM’s audited consolidated financial statements as at 31 December 2016 and assuming that the Disposal had taken place at the beginning of the year, the Disposal is expected to realise a gain of up to RM3 million to GENM Group.

The Disposal is not expected to have a material effect on the consolidated earnings and net assets of GENM for the financial year ending 31 December 2017.

This announcement is made pursuant to Paragraph 9.19(24) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad whereby EGSB ceased to be a subsidiary of GENM.

This announcement is dated 31 July 2017.