1.      ANNOUNCEMENT

        With reference and further to the announcement dated 8 September 2022, the Board of Directors (“Board”) of Tanco wishes to announce that Palm Springs Development Sdn Bhd

       (“PSD”),  a wholly-owned indirect subsidiary of Tanco, has to-date received the Bank’s letter dated 28 February 2023 confirming the Bank’s agreement to the full and final

       settlement of the Facility per the Settlement Sum of RM30.5 million remitted earlier by PSD (“the Concluded Settlement”).

2.     THE CONCLUDED SETTLEMENT

2.1   The Concluded Settlement is in furtherance to the Bank’s letter dated 2 September 2022 on the Proposed Settlement which was announced earlier on 8 September 2022.

2.2   As further stated in the Bank’s letter dated 28 February 2023, the Facility is considered as fully settled as of to-date, and the Bank will proceed with the discharge of the related

       Securities/ Guarantees held by the Bank per the Facility and shall return to PSD any available balance in PSD’s Revenue Account with the Bank upon the completion of the

       discharge and release of the said Securities/ Guarantees. 

2.3   As at 31 December 2022, the total amount outstanding in relation to the Facility stood at RM39.1 million ( and the Concluded Settlement is expected to result in an immediate

       one-off pre-tax saving of at least RM8.6 million). 

3.    DIRECTORS' STATEMENT

       The Board is of the opinion that the settlement is in the best interest of the Group as in addition to the immediate one-off pre-tax saving of RM 8.6 million, the Concluded

       Settlement will also result in pre-tax financing costs of approximately RM 2.6 million per annum and allow the Group to free up multiple assets currently held as security by the 

       Bank. Post this Concluded Settlement, the Group’s bank financing facilities debt is now less than RM6.7 million.

This announcement is dated 28 February 2023.