General Announcement

22/08/2007

DAYA MATERIALS BERHAD ("DMB" or "the Company") Recurrent Related Party Transactions between Daya Polymer Sdn Bhd ("DPSB"), a wholly owned subsidiary of DMB, and Cominet Corporation, Korea ("Cominet")

DAYA MATERIALS BERHAD

Type

Announcement
SubjectDAYA MATERIALS BERHAD ("DMB" or "the Company")

Recurrent Related Party Transactions between Daya Polymer Sdn Bhd ("DPSB"), a wholly owned subsidiary of DMB, and Cominet Corporation, Korea ("Cominet")

Contents :

1. INTRODUCTION

We refer to our announcement dated 4 May 2007 in relation to the above matter.

The Board of Directors (Board) of DMB is pleased to announce that Bursa Malaysia Securities Berhad (Bursa Securities) had, vide its letter dated 9 August 2007, approved the Companys application to announce the recurrent related party transactions of a revenue or trading nature which are in the ordinary course of business (RRPTs) between DPSB and Cominet on a quarterly basis instead of immediately after each RRPTS, subject to the compliance to Paragraphs 10.08(9) of the Listing Requirements of Bursa Securities for MESDAQ Market (MMLR).


2. DETAILS OF THE RECURRENT RELATED PARTY TRANSACTIONS

Pursuant to Paragraphs 10.08(9) of the MMLR, the Board of DMB hereby announces that DPSB has entered into RRPTS with Cominet between 26 May 2007 (being the day immediately following the expiry of the previous shareholders mandate for the RRPTs on 25 May 2007) and 30 June 2007.

Details of the RRPTs and the aggregate value of such transactions are as below:-

Company within DMB Group
Related Party
Interested Party
Nature of relationship
Nature of Transaction
Aggregate Value
RM
DPSB
Cominet
Song Tae Chin
Note (a)
Supply of carbon black, ethylene vinyl acetate and polyethylene as raw materials to DPSB
565,636
      Note:
    (a) Song Tae Chin, who is the President and Chief Executive Officer of Cominet, is also a director of DPSB and a Promoter of DMB. As at 9 August 2007, Song Tae Chin has 47.91% equity interest in Cominet.

      The above RRPTs are undertaken at arms length, normal commercial terms, on terms not more favourable to the related party than those generally made available to the public and are not detrimental to the minority shareholders.


    3. RATIONALE

    The RRPTs are necessary for the supply of raw materials for the day-to-day operations of the DMB Group.


    4. FINANCIAL EFFECTS

    The RRPTs will not have any effect on the issued and paid-up share capital of DMB. The RRPTs are expected to result in positive impact on the earnings of DMB Group as the raw materials supplied by Cominet are directly used in DMBs manufacturing operation.

    The RRPTs will also not have any impact on the net assets and gearing of DMB Group and major shareholders shareholding of the Company.


    5. DIRECTORS AND MAJOR SHAREHOLDERS INTEREST

    The RRPTs involve transactions between DPSB and Cominet. Cominet in turn is 47.91% owned by Sing Tae Chin, who is also the President and Chief Executive Officer of Cominet. Song Tae Chin is also a director of DPSB.

    Song Ha Hyung is also a Director of DPSB and is the brother to Song Tae Chin.
      As such, Cominet, Song Tae Chin and Song Ha Hyung are deemed interested in the RRPTs.
      As at 9 August 2007, the direct and indirect shareholdings of Cominet, Song Tae Chin and Song Ha Hyung are as follows:-

      <--------------Direct----------------> <----------------Indirect-------------->
      Name
      No. of DMB shares held
      		%
      No. of DMB shares held
      %
      Transacting Related Party
      Cominet Corporation, Korea
      -
      -
      -
      -
      Interested Director of DPSB
      Song Tae Chin
      9,168,900
      		3.11
      -
      -
      Song Ha Hyung
      200,000
      		0.07
      -
      -

      Song Tae Chin and Song Ha Hyung have accordingly abstained and will continue to abstain from deliberating and voting at any Board meetings of DPSB in respect of the RRPTs.
        Save as disclosed below, none of the Directors and/or major shareholders of the Company and/or person(s) connected to the Interested Directors or associates of a related party as defined in the MMLR have any interest, direct or indirect in the RRPTs.


      6. STATEMENT BY THE BOARD OF DIRECTORS

      The Board is of the opinion that the above RRPTs are fair and reasonable to the Company, are not to the detriment of the Company, at arms length, normal commercial terms, on terms not more favourable to the related party than those generally made available to the public and its shareholders and are in the best interest of DMB Group.


      7. APPROVALS REQUIRED

      The RRPTs are not subject to the approval of the shareholders of DMB or any other relevant authorities.


      This announcement is dated 22 August 2007.

      Announcement Info

      Company NameDAYA MATERIALS BERHAD (MESDAQ Market) 
      Stock Name DAYA
      Date Announced22 Aug 2007  
      CategoryGeneral Announcement
      Reference NoCC-070821-49D61



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