1.         INTRODUCTION

On behalf of the Board of Directors of AME (“Board”), Hong Leong Investment Bank Berhad (“HLIB”) wishes to announce that HLIB has been appointed as the Principal Adviser and Bookrunner by AME for the Proposed REIT Establishment and Listing.

The initial investment portfolio of AME REIT shall comprise industrial properties to be identified, which are currently owned by the subsidiaries of AME (“Subject Properties”).

The Proposed REIT Establishment and Listing may entail, amongst others, the following:

(i)   proposed disposals by the subsidiaries of AME of their interests in the Subject Properties to AME REIT with the disposal consideration to be satisfied through a combination of cash and issuance of new units in AME REIT (“Units”);

(ii)   proposed placement of Units to institutional investors and selected investors to meet the public unitholding spread requirement of at least 25% pursuant to the Main Market Listing Requirements of Bursa Securities; and

(iii)   proposed admission of AME REIT to the Official List of Bursa Securities and the listing of and quotation for the Units on the Main Market of Bursa Securities.

Apart from the above, AME will also explore other potential corporate exercises which may be undertaken as part of the Proposed REIT Establishment and Listing.

The Proposed REIT Establishment and Listing will be subject to, amongst others, valuation of the Subject Properties to be conducted, finalisation of the structure, terms and conditions, the necessary approvals, waivers and/or consents from the relevant authorities and the approval of the shareholders of AME.

2.         RATIONALE OF THE PROPOSED REIT ESTABLISHMENT AND LISTING

The Proposed REIT Establishment and Listing will allow AME to grow its business further by monetising its investments in the Subject Properties. Proceeds raised will equip AME with the necessary funds to capitalise on strategic business opportunities as and when it arises, which in turn may strengthen AME's financial performance, thereby maximising shareholders' return.

In addition, the Proposed REIT Establishment and Listing provides AME REIT with access to the capital markets in order to raise funds for future industrial real estate acquisitions. The AME REIT will also give investors the opportunity to invest directly in a real estate investment trust which is expected to provide stable distribution of income and potential capital appreciation on investment in the Units.

The details of the Proposed REIT Establishment and Listing will be announced when all the terms and conditions have been finalised.

This announcement is dated 1 December 2020.