1. Introduction
Pursuant to paragraph 9.19 (24) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (Bursa Securities), the Board of Directors of EKA wishes to announce that the Company, had on 20 May 2014 disposed of its entire equity interest in Bersatu (BVI) Limited to Noor Lamin Bin Lasang (NRIC No. 531026-71-5147) of No. 994, Kampung Tok Panjang, Bukit Tengah, 14000 Bukit Mertajam, Penang and Abu Bakar Bin Shaffihi (NRIC No. 470413-07-5315) of No. 673, MK 6, Kampung Tok Panjang, Bukit Tengah, 14000 Bukit Mertajam, Penang for a total consideration of RM1.00 only (the Disposal).
2. Details of Bersatu (BVI) Limited
Bersatu (BVI) Limited was incorporated in the territory of British Virgin Island on 09 July 2004 with an authorized capital of USD5,000,000 divided into 5,000,000 ordinary shares with the par value of USD1.00 per share and the paid-up of USD1,425,001. Bersatu (BVI) Limited is an investment holding company.
As at the date of this announcement, Bersatu (BVI) Limited has a 95% owned subsidiary, PT Bersatu International Food Industries that had ceased operation and currently, inactive and dormant.
3. Rationale of the Disposal
As Bersatu (BVI) Limited is an inactive subsidiary, the Disposal is to streamline the portfolio of the Group.
4. Financial Effects
The Disposal will not have any material effect on share capital, substantial shareholdings structure, the Groups net assets per share, earnings per share and gearings for the year ending 30 June 2014.
5. Directors and Major Shareholders Interest
None of the directors and/or major shareholders of EKA and/or persons connected with them had any interest, either direct or indirect in the Disposal.
6. Approvals Required
The Disposal is not subject to the approval of shareholders of EKA and/or any other governmental authorities.
7. Statement by the Board of Directors
The Board of Directors of EKA, after taking into consideration all aspects of the Disposal including the rationale of the Disposal, is of the opinion that the Disposal is in the best interest of the Company.
8. Percentage Ratio
The highest percentage ratio applicable to the Disposal pursuant to paragraph 10.02(g) of the Main Market Listing Requirements of Bursa Securities is negligible.
This announcement is dated 20 May 2014.