Contents :
1.0 INTRODUCTION
The Board of Directors of Country Heights Holdings Berhad ("CHHB") is pleased to announce that Tindak Murni Sdn Bhd, a wholly-owned subsidiary of CHHB had on 4 November 1999 entered into an agreement with Net-Linx Asia Pacific Sdn Bhd ("Net-Linx"), a MSC status company for the proposed sale of 106 units ("the Units") of residential apartments in Cyber Heights (Phase 1B), Cyberjaya for a total cash consideration of RM32,258,040 ("Sale Price") with vacant possession and free from encumbrances.
2.0 PROPOSED SALE
2.1 Background on Cyber Heights Villa Project
a. Cyber Heights Villa ("the Project") is a property development project undertaken by CHHB. Tindak Murni Sdn Bhd ("TMSB") is the developer for the Project which forms part of Phase 1B of Cyberjaya Flagship Zone situated in Mukim Dengkil, District of Sepang, State of Selangor Darul Ehsan within the Multimedia Super Corridor (MSC) in Cyberjaya.
b. Cyber Heights Villas is a premier development built under the Smarthomes concept initiated by CHHB which is also an opportunity to cater to the needs of the MSC environment.
c. TMSB and Net-Linx or its nominees shall execute separate Sale and Purchase Agreements ("SPA") for the Units to comply with the Housing Developers (Control and Licensing) Act 1966. 10% of the Sale Price shall be payable to TMSB upon the execution of the SPA and the balance of the consideration in accordance to the schedule of payment of the SPA.
2.2 Basis of consideration
The total disposal consideration of the Proposed Sale amounting to RM32,258,040 was arrived at on a willing-buyer-willing-seller basis.
2.3 Rationale for the Proposed Sale
a. The Proposed Sale is transacted in the ordinary course of business and in line with CHHB Group's management strategy to realise its net asset value.
b. The sales proceeds will be utilised as funding for the development expenses and working capital.
3.0 FINANCIAL EFFECTS OF THE PROPOSED SALE
The financial effects of the Proposed Sale on the issued and paid up Share Capital, Earnings Per Share ("EPS") and Net Tangible Assets ("NTA") of CHHB are summarised as below :-
3.1 On Share Capital
The Proposed Sale will not have effect on the issued and paid-up share capital as it does involve the issue of any new CHHB shares.
3.2 On EPS
The Proposed Sale is not expected to have a material effect on the earnings of the CHHB Group for the current financial year ending 29 February 2000.
3.3 On NTA
The Proposed Sale is not expected to have material impact on the NTA of CHHB at company and group levels for the financial year ending 29 February 2000. However, the Proposed Sale is expected to contribute positively towards the future earnings of the CHHB Group.
4.0 APPROVALS TO BE SOUGHT
The Proposed Sale will be conditional upon the following approvals being obtained from :-
a. the Foreign Investment Committee
b. all other relevant authorities
5.0 DIRECTORS' AND SUBSTANTIAL SHAREHOLDERS' INTEREST
None of the directors or substantial shareholders of CHHB or persons connected to the directors of CHHB and/or substantial shareholders, have any interest, direct or indirect, in the Proposal has any interest, direct or indirect, in the said Proposed Sale.