General Announcement

02/01/2004

PROPOSED DISPOSAL OF AN INTERMEDIATE 4 STOREY SHOP OFFICE WITH BASEMENT SITUATED AT NO.758 BATU 4 Ѕ JALAN IPOH, 51200 KUALA LUMPUR, BY ENGTEX SDN BERHAD, A WHOLLY OWNED SUBSIDIARY OF ENGTEX GROUP BERHAD (ENGTEX) TO NKG RESOURCES SDN BHD FOR A CONSIDERATION OF RM900,000 (PROPOSED DISPOSAL)

ENGTEX GROUP BERHAD

Type

Announcement
SubjectPROPOSED DISPOSAL OF AN INTERMEDIATE 4 STOREY SHOP OFFICE WITH BASEMENT SITUATED AT NO.758 BATU 4 Ѕ JALAN IPOH, 51200 KUALA LUMPUR, BY ENGTEX SDN BERHAD, A WHOLLY OWNED SUBSIDIARY OF ENGTEX GROUP BERHAD (ENGTEX) TO NKG RESOURCES SDN BHD FOR A CONSIDERATION OF RM900,000 (PROPOSED DISPOSAL)

Contents :

1. INTRODUCTION


The Board of Directors of Engtex Group Berhad (Engtex) wishes to announce that Engtex Sdn. Berhad., a wholly owned subsidiary of Engtex, has on 31 December 2003, entered into a Sale and Purchase Agreement (the Agreement) with NKG Resources Sdn. Bhd. (the Purchaser) for the disposal of an intermediate 4 storey shop office with basement situated at No.758 Batu 4 Ѕ Jalan Ipoh, 51200 Kuala Lumpur (hereinafter to be known as the Property) for a cash consideration of Ringgit Malaysia Nine Hundred Thousand (RM900,000.00) only.

2. DETAILS OF THE PROPOSED DISPOSAL

2.1 Brief Information on the Property

      The Property is an intermediate 4 storey shop office with an approximate built up area of 6,600 square feet located on a piece of leasehold land measuring approximately 1,430 square feet held under H.S.(M) 3300, Lot 35415 Mukim Batu, Daerah Kuala Lumpur, Wilayah Persekutuan.

      The ground floor of the building is currently rented to Kota Niaga Sdn Bhd at a monthly rental of RM2,500.00 and the first, second and third floors are currently rented to Tiaraview (M) Sdn Bhd at a monthly rental of RM3,500.00.

2.2 Original Cost of Investment
      The original cost of investment of the Property was RM517,984.50 whilst the net book value of the Property based on the latest audited financial statements as at 31 December 2002 was RM449,527.84. According to the Valuation Report by Henry Butcher Lim & Long Sdn Bhd dated 23 May 2001 for listing exercise, the market value of the Property is RM900,000. The property is currently charged to Public Bank Berhad.

      The age of the building is approximately 18 years whilst the leasehold land has a tenure of 99 years expiring on 19 December 2083.

2.3 Basis of the Sale Consideration
      The sale consideration of RM900,000.00 to be satisfied by cash was arrived at on a willing-buyer and willing-seller basis and based on the market value of the Property of RM900,000 as per Valuation Report by Messrs Henry Butcher Lim & Long Sdn Bhd dated 23 May 2001.

2.4 Salient Terms of the Agreement
      The Agreement is unconditional and the payment terms of the sale consideration are as follow:

      (a) Deposit of 10% or RM90,000 upon execution of the Agreement.
      (b) Balance sum of 90% or RM810,000 is payable within 3 months from the date of the Agreement.

2.5 Estimated time for Completion.
      The disposal is estimated to be completed by second quarter of 2004.

3. RATIONALE FOR THE PROPOSED DISPOSAL

The disposal is in line with Engtexs plan to dispose of its non-core assets and at the same time to conserve resources for more productive core activities, i.e. Manufacturing, Wholesale and Distribution of Pipes, Valves, Fittings, Plumbing Materials and General Hardware Products.

4. FINANCIAL EFFECTS OF THE PROPOSED DISPOSAL

The disposal will not have any effect on the net tangible assets, share capital, Directors shareholdings and substantial shareholders shareholdings of Engtex but the gain on disposal of the Property estimated of RM400,000.00 will result in an improvement in the earnings of Engtex for the year ended 31 December 2003. The proceeds from the disposal would be utilised for the repayment of the loan facilities and the remaining for working capital.

5. DIRECTOR AND SUBSTANTIAL SHAREHOLDERS INTERESTS

None of the directors and/or substantial shareholders and/or persons connected with a director or substantial shareholder has any interest, whether direct or indirect, in the disposal other than Dato Ng Hook, Ng Chooi Guan, Datin Yap Seng Kuan and Ng Yik Soon by virtue of them being Directors and their direct or indirect interest in NKG Resources Sdn Bhd.

6. DIRECTORS RECOMMENDATION

The Board of Directors of Engtex is of the opinion that the disposal is in the best interest of Engtex.

7. APPROVALS REQUIRED FOR THE PROPOSED DISPOSAL

The disposal of property does not require the approvals of the shareholders of Engtex.

8. DOCUMENTS FOR INSPECTION

A copy of the Agreement dated 31 December 2003 for the disposal and the abovementioned Valuation Report will be made available at the registered address at Lot 36, Jalan BRP 9/2B, Putra Industrial Park, Bukit Rahman Putra, 47000 Sungai Buloh, Selangor, during office hours for a period of three (3) months.

This announcement is dated 2 January 2003.


Announcement Info

Company NameENGTEX GROUP BERHAD  
Stock Name ENGTEX
Date Announced2 Jan 2004  
CategoryGeneral Announcement
Reference NoCS-040102-65027

Related Announcements for ENGTEX
Date Title
10/04/2015 OTHERS ENGTEX GROUP BERHAD ("Engtex") - Proposed Renewal of Shareholders' Mandate and Proposed New Shareholders' Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature; and - Proposed Renewal of Share Buy-Back Authority
30/12/2014 TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS): NON RELATED PARTY TRANSACTIONS ACQUISITION OF FOUR PIECES OF LANDS BY BENTON CORPORATION SDN BHD
26/12/2014 TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS): NON RELATED PARTY TRANSACTIONS ACQUISITION OF FOUR PIECES OF LANDS BY BENTON CORPORATION SDN BHD
24/12/2014 TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS): NON RELATED PARTY TRANSACTIONS ACQUISITION OF FOUR PIECES OF LANDS BY BENTON CORPORATION SDN BHD
10/12/2014 NEW ISSUE OF SECURITIES (CHAPTER 6 OF LISTING REQUIREMENTS): BONUS ISSUES ENGTEX GROUP BERHAD (“ENGTEX” OR “COMPANY”) (I) BONUS ISSUE; (II) IASC; AND (III) AMENDMENT (COLLECTIVELY REFERRED TO AS THE “CORPORATE EXERCISES”)
09/12/2014 NEW ISSUE OF SECURITIES (CHAPTER 6 OF LISTING REQUIREMENTS): BONUS ISSUES ENGTEX GROUP BERHAD (“ENGTEX” OR “COMPANY”) (I) BONUS ISSUE; (II) IASC; AND (III) AMENDMENT (COLLECTIVELY REFERRED TO AS THE “CORPORATE EXERCISES”)
05/12/2014 TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS): NON RELATED PARTY TRANSACTIONS ACQUISITION OF 100% EQUITY INTEREST IN DOMINO TECHNOLOGY SDN BHD
23/10/2014 NEW ISSUE OF SECURITIES (CHAPTER 6 OF LISTING REQUIREMENTS): BONUS ISSUES ENGTEX GROUP BERHAD (“ENGTEX” OR “COMPANY”) (I) PROPOSED BONUS ISSUE; (II) PROPOSED IASC; AND (III) PROPOSED AMENDMENT (COLLECTIVELY REFERRED TO AS THE “PROPOSALS”)
08/10/2014 NEW ISSUE OF SECURITIES (CHAPTER 6 OF LISTING REQUIREMENTS): BONUS ISSUES ENGTEX GROUP BERHAD (“ENGTEX” OR “COMPANY”) (I) PROPOSED BONUS ISSUE; (II) PROPOSED IASC; AND (III) PROPOSED AMENDMENT (COLLECTIVELY REFERRED TO AS THE “PROPOSALS”
26/09/2014 NEW ISSUE OF SECURITIES (CHAPTER 6 OF LISTING REQUIREMENTS): BONUS ISSUES ENGTEX GROUP BERHAD (“ENGTEX” OR “COMPANY”) (I) PROPOSED BONUS ISSUE; (II) PROPOSED IASC; AND (III) PROPOSED AMENDMENT (COLLECTIVELY REFERRED TO AS THE “PROPOSALS”)