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We refer to Arab-Malaysian Merchant Bank Berhads ( Arab-Malaysian ) announcements on the Proposed Restricted Issue dated 4 September 1998, 13 August 1999 and 6 October 1999.
Arab-Malaysian, on behalf of the Board of Directors of CHHB, is pleased to announce that the Company has completed the issue of a first tranche of 13,600,000 ordinary shares of RM1.00 each to Mr Shih-Yu-Lung ( SYL ). The issue price for the first tranche of the Proposed Restricted Issue has been determined at RM4.13 per new ordinary share representing a premium of five (5) sen over the five day weighted average market price of CHHB prior to the allotment of the shares on 12 November 1999 of RM4.08. The Kuala Lumpur Stock Exchange has granted a listing and quotation for the first tranche of shares with effect from 9.00 a.m. Thursday, 25 November 1999.
These shares have been issued as part settlement of RM56.17 million of the RM100 million US Dollar loan extended by SYL ( Loan ), to Best Golden Inc. a wholly owned subsidiary of CHHB, vide a loan letter agreement dated 16 March 1999. This represents part settlement of the Loan which was obtained by CHHB to fund its involvement in the London Docklands Exhibition Centre project. The revised utilisation of the Proposed Restricted Issue to allow RM100 million worth of new CHHB shares to be issued as settlement of the Loan was approved vide the Securities Commission ( SC ) letter dated 9 August 1999.
The abovementioned issue, which is the first tranche of shares to be issued pursuant to the Proposed Restricted Issue, represents 4.93% of the enlarged issued and paid-up share capital of the Company upon completion of the first tranche of shares issued. The Company has applied on 19 November 1999 to the SC to extend the time to implement the remaining tranches, representing the issue of the balance 38.82 million shares of the Proposed Restricted Issue, which expires on 28 November 1999.
In addition to the proposed settlement of RM100 million of the capital portion of the said Loan as mentioned above, the Company has also applied for the proposed further expansion of utilisation of the Proposed Restricted Issue. CHHB now proposes to utilise a further RM56 million of the Proposed Restricted Issue shares as full settlement of the amounts owing to SYL vide the profit sharing element of the said Loan agreement. The decision of the SC is pending as at the date of this announcement.