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Mesiniaga has on the 24th December 1999 entered into a Share Sale Agreement with Encik Wong Chiew Ming to dispose its 25% ownership of Axis Systems Sdn. Bhd. Axis Systems Sdn. Bhd. is an associate company with a paid-up capital of RM500,000 that provides computer software services. Mesiniaga Berhad's total investment in Axis Systems Sdn. Bhd. is RM275,000.
The disposal of Mesiniaga Berhad's entire investment of 125,000 ordinary shares of RM1.00 each with an equivalent NTA of RM 1.2 million is at a cash consideration of RM14.60 per share. The Board of Directors of Mesiniaga Berhad is of the view that the disposal of the shares is in the best interest of Mesiniaga Berhad.
This transaction will be completed in January 2000 and will not affect the financial year ending 31st December 2000 by RM1,550,000. The proceeds received from this sale will be used as an additional working capital of Mesiniaga Berhad.
The disposal will marginally increase the earnings per share & the NTA per share of Mesiniaga Berhad by 0.026 sen.
In so far as the Board of Directors of Mesiniaga Berhad are aware, none of the Directors or substantial shareholders or persons connected to them has any interest, direct or indirect, in this transaction.