1. Introduction

Magnum Berhad (“Magnum” or “Company”) wishes to announce that its inactive subsidiary, Magnum Information Technology Sdn. Bhd. (“MITSB”), will commence the members’ voluntary winding-up proceedings by circulating a shareholders’ written resolution to MITSB’s members to pass a special resolution pursuant to Section 439(1)(b) of the Companies Act 2016 (collectively “MITSB Members’ Voluntary Winding-Up”).

2. Information On MITSB

MITSB was incorporated in Malaysia on 25 October 1995. As at the date hereof, MITSB has an issued share capital of 600,000 fully paid-up ordinary shares. The principal activities of MITSB were as follows:-

(a)  Design, develop and implement software applications (Turnkey, Web-based, and others);

(b)  Provide information security consultancy services;

(c)  Provide software consultancy services in areas like evaluating technical proposals, conducting feasibility studies, project management and others; and

(d)  Provide technical expertise on areas like Firewall Implementation, Smart-Card Implementation, Public Key Infrastructure Deployment, and others.

With effect from 1 September 2018, MITSB had ceased its entire operations. Currently, Magnum has 99.67% effective equity interest in MITSB held through Magnum 4D Berhad (60% direct equity interest in MITSB) and Magnum Corporation Sdn Bhd. (40% direct equity interest in MITSB).

3. Rationale For The MITSB Members’ Voluntary Winding-Up

The MITSB Members’ Voluntary Winding-Up will enable Magnum to save future administrative time and costs associated with maintaining an inactive company namely, MITSB. In addition, Magnum has no future plan to activate the businesses or operations of MITSB.

4. Appointment Of Liquidator

Mr Sylvester Devaraj a/l Anthony, a chartered accountant (MIA 4228), will be appointed as the Liquidator for the purpose of the MITSB Members’ Voluntary Winding-Up proceedings.

5. Financial Effect Of The MITSB Members’ Voluntary Winding-Up To The Group

The MITSB Members’ Voluntary Winding-Up proceedings are not expected to have any material impact on Magnum Group’s operations, earnings, net assets and gearing for the current financial year ending 31 December 2019.

6. Interests Of Directors, Substantial Shareholders and Persons Connected to them

None of the directors and substantial shareholders of Magnum and persons connected with them have any interests, direct or indirect, in the MITSB Members’ Voluntary Winding-Up.

7. Directors’ Statement

The Directors of Magnum, having considered all aspects of the voluntary winding-up proceedings, are of the opinion that the MITSB Members’ Voluntary Winding-Up is in the best interest of the Magnum Group.

This announcement is dated 19 November 2019.