| Subject | INFORMATION CIRCULAR TO SHAREHOLDERS in relation to:
. ACQUISITION BY ENGTEX GROUP BERHAD ("ENGTEX") OF 1,200,000 ORDINARY SHARES OF RM1.00 EACH REPRESENTING 80% EQUITY INTEREST IN ENGTEX DUCTILE IRON PIPE INDUSTRY SDN BHD (FORMERLY KNOWNS AS LINEAR SOLID SDN BHD) ("EDIPI") FROM LEE GEOK AI AND LAW SEONG CHYE FOR A TOTAL CASH CONSIDERATION OF RM1,200,000;
. SUBSCRIPTION BY ENGTEX FOR 2,800,000 NEW ORDINARY SHARES OF RM1.00 EACH IN EDIPI, REPRESENTING 80% OF THE ENLARGED ISSUED AND PAID-UP SHARE CAPITAL OF EDIPI, AT AN ISSUE PRICE OF RM1.00 PER SHARE FOR A TOTAL CASH AMOUNT OF RM2,800,000; AND
. PROPOSED CASH ADVANCE OF RM8,000,000 BY ENGTEX BY WAY OF SHAREHOLDERS LOAN TO EDIPI FOR WORKING CAPITAL PURPOSES
(COLLECTIVELY REFERRED TO AS "PROPOSED INVESTMENT"); AND
. REVISION TO THE UTILISATION OF PROCEEDS OF RM5.0 MILLION FROM THE RM24.9 MILLION RAISED PURSUANT TO THE INITIAL PUBLIC OFFERING BY ENGTEX |