Unless otherwise defined, the definitions used in this announcement shall have the same meanings as previously defined in the earlier announcement in relation to the same. 

Further to the Company's announcement made on 27 November 2019 on the HOA, the Company wishes to provide the following additional information:

EFFECTS AND RISK FACTORS

The Proposed Acquisition will not have any effect on the issued share capital and number of ordinary shares in Widad, net assets of Widad and substantial shareholders’ shareholdings in Widad.

1.            Earnings and earnings per share (“EPS”)

The Proposed Acquisition is not expected to have any immediate material effect on the earnings and EPS of Widad Group for the financial year ending 31 December 2019 as the Proposed Acquisition is only expected to be completed within 8 months from the execution of the HOA. Nevertheless, the Proposed Acquisition is expected to contribute positively to the future earnings of Widad Group when the benefits are realised from undertaking the concession agreement.

2.            Gearing

The Proposed Acquisition is not expected to have any immediate material effect on the gearing of Widad Group for the financial year ending 31 December 2019 as the Proposed Acquisition is only expected to be completed within 8 months from the execution of the HOA. The gearing ratio of Widad Group is expected to increase following the Proposed Acquisition as the Purchase Consideration shall be raised from a combination of internally generated fund and bank borrowings. However, the effect cannot be determined now as the proportion between internally generated fund and bank borrowings has yet to be finalised

This announcement is dated 29 November 2019.