Contents :
1. INTRODUCTION
We are pleased to inform the Exchange that DRP, a 70% owned subsidiary of KRIB had subscribed in cash for 999,998 ordinary shares of RM1.00 each fully paid up in the share capital of QP for a total consideration of RM999,998 (Ringgit Malaysia: Nine Hundred and Ninety Nine Thousand Nine Hundred and Ninety Eight only) on 10th May 2002.
2. RATIONALE FOR THE SUBSCRIPTION OF SHARES
The subscription of shares was to enable QP to commence business in the manufacturing of Rubber Fenders, Rubber Expansion Joints, Elastomeric Bearings and Anti-Vibration Pads and to provide for working capital.
3. FINANCIAL EFFECTS
3.1 Share Capital
The above subscription shares will not have any effect on the issued and paid-up share capital of KRIB.
3.2 Shareholding Structure
With the subscription of 999,998 ordinary shares of RM1.00 each by DRP in the share capital of QP, DRP will own 1,000,000 ordinary shares of RM1.00 each in QP.
3.3 Earnings
The above subscription of shares will not have any material impact on the earnings of KRIB for the financial year ending 31 December 2002.
3.4 Net Tangible Assets (NTA)
The above subscription of shares will not have any material effect on the NTA of KRIB.
3.5 Gearing
The above subscription of shares will not have any material effect on the gearing of KRIB.
4. DIRECTORS AND/OR MAJOR SHAREHOLDERS AND/OR PERSONS CONNECTED WITH A DIRECTOR OR MAJOR SHAREHOLDERS INTERESTS.
Save as disclosed below:-
(a) Mr. Lim Kuang Sia
- A director and major shareholder of KRIB, DRP and QP.
(b) Mr. Or Tan Teng
- A director and major shareholder of DRP and QP.
(c) Messrs Lim Kuang Yong, Lim Kuang Wang, Lim Kwan Hwa, Lim Leng Bung
and Heng Bak Tan
- Directors and major shareholders of KRIB.
They are deemed interested in the transaction by virtue of them being major shareholders of KRIB. KRIB has a 70% interest in DRP and DRP has a 100% interest in QP.
None of the other directors of KRIB or persons connected to them have any interest, direct or indirect in the above subscription of shares.
5. DIRECTORS OPINION
The Directors of the Company, after having considered all aspects of the above subscription of shares, are of the opinion that the above subscription of shares is fair and reasonable and is in the best interest of KRIB and the KRIB group.
6. APPROVALS REQUIRED
The above subscription of shares is not subject to shareholders approval and other relevant authorities.
This announcement is dated 10 May 002.