On behalf of the Board of Directors of MBGB, Malacca Securities Sdn. Bhd. wishes to announce that MBGB proposes to undertake the following:

(i)  proposed subscription and acquisition of 2,520,000 ordinary shares in Expogaya Sdn. Bhd. (“EXPO”) (“EXPO Shares”), representing 70.0% of the enlarged issued shares of EXPO, via the following:

     (a) subscription of 500,000 EXPO Shares (“Subscription Shares”), representing approximately 13.9% of the enlarged issued shares of EXPO, pursuant to the conditional subscription agreement entered into between MBGB (as the Subscriber), EXPO and Chang Ket Keong ("CKK") (as the Promoter) on 27 October 2023 (“Subscription Agreement”), for a cash consideration of RM5,000,000 (“Subscription Consideration”), subject to the terms and conditions of the Subscription Agreement;

     (b) acquisition of 2,020,000 EXPO Shares (“Sale Shares”), representing approximately 56.1% of the enlarged issued shares of EXPO, pursuant to the conditional shares sale agreement entered into between MBGB (as the Purchaser), CKK, Beton Chemical Technology Sdn Bhd (“BCTSB”), Fung Chun Fatt (“FCF”) and Chin Swee Yen (“CSY”) (CKK, BCTSB, FCF and CSY collectively, referred to as the “Vendors”) (“CSSA”), for a total purchase consideration of RM23,040,000 (“Purchase Consideration”) which shall be satisfied via the issuance of 98,461,536  new ordinary shares in MBGB (“MBGB Shares” or “Shares”) at an issue price of RM0.234 each (“Consideration Shares”), subject to the terms and conditions of the CSSA,

     (collectively, referred to as the “Proposed Acquisition”); and

(ii) proposed diversification of the existing business of MBGB and its subsidiaries to include manufacturing, trading and supply of building materials including cement, ready-mixed concrete and its related products as well as provision of related services including transportation services and equipment rental, in conjunction with the Proposed Acquisition (“Proposed Diversification”),

(collectively, referred to as the “Proposals”).

Further details in relation to the Proposals are set out in the attachment below.

This announcement is dated 27 October 2023.