Contents :
1. Acquisition of Shell Company
Kossan Rubber Industries Bhd ("KRI" or the "Company") whishes to inform the Exchange that the Company through Doshin Rubber Products (M) Sdn Bhd ("DRP"), a 70% owned subsidiary has on 23rd November 2001 acquired a shell company, Quality Profile Sdn Bhd ("QP"), a company incorporated in Malaysia for a total cash consideration of RM2.00 from Mr. Chia Kia Hock and Madam Hian Bee Geok.
2. Information on QP
a) QP was incorporated in Malaysia under the Companies Act, 1965 on 10th October 1995 as a private company limited by shares with an authorised share capital of RM100,00 divided into 100,000 shares of RM1.00 each. The current issued and paid up share capital is RM2.00 consisting of 2 ordinary shares of RM1.00 each. QP is currently dormant.
b) Messrs Lim Kuang Sia and Or Tan Teng, a director of DRP, will be appointed directors of QP.
3. Rationale for the Acquisition
KRI is already the leading technical rubber products manufacturer in the country, excluding the production of tyres. The acquisition of DRP earlier in the year has expanded the KRI's range of technical rubber products into bridge bearing pads, expansion joints, dock fenders and related engineering products. The acquisition of QP which proposes to venture into the infrastructure sector, especially into marine fenders and vibration pads will complement the business activities of KRI.
4. Effects of the Acquisition
a) Share capital and substantial shareholding
The Acquisition will not have any effect on the share capital and substantial shareholding of KRI as the acquisition will be by cash.
b) Earnings and net tangible assets
The Acquisition is not expected to have any material impact on the earnings per share and net tangible assets of the KRI Group for the financial year ending 31st December 2001.
c) Directors and substantial shareholders' interests
None of the Directors, substantial shareholders or persons connected to the Directors and substantial shareholders of the Company have any interest, whether direct or indirect in the transaction.
5. Condition of the Acquisition
The Acquisition is not subject to the approval of any government authorities or shareholders of the Company.
6. Statement by the Board of Directors
The Board of Directors of KRI is of the opinion the acquisition is in the best interest of KRI.
7. Documents available for Inspection
The statutory documents of QP will be available for inspection at its Registered Office at 82F Jalan Pulasan, 41000 Klang, Selangor Darul Ehsan.
This announcement is dated 23rd November 2001.