| Contents | 1. INTRODUCTION
The Board of Directors of RGB International Bhd. (formerly known as Dreamgate Corporation Bhd.) ( RGBI ) has disposed of its entire interest in its wholly owned subsidiary, Frontier Wish International Limited ( FWIL ) to Mr. Monthian Leevongprasert ( Purchaser ) for a total consideration of RM5,000 only [ the Proposed Divestment ] on 06 December 2010.
Accordingly, FWIL shall cease to be a subsidiary with immediate effect.
2. BACKGROUND INFORMATION
2.1 FWIL
FWIL was incorporated in Hong Kong on 06 November 2007. Its issued and paid up share capital is HKD1 comprising 1 ordinary share. To-date, FWIL has not commenced operations.
2.2 PURCHASER
The Purchaser, Mr. Monthian Leevongprasert (Passport no. J844383), a Thai national, has no connection to any directors, major shareholders and or persons connected to the directors and or the major shareholders of RGBI.
3. RATIONALE OF THE PROPOSED DIVESTMENT
The Board of Directors of RGBI is of the opinion that the divestment of FWIL is in line with the intention of the Group to dispose of dormant and under-utilised companies.
4. RISK FACTORS
The Proposed Divestment is not subject to any risks inherent in the industry, including business risks and dependence on key personnel, as well as the prevailing political and economic environment and various other risks.
5. FINANCIAL EFFECTS OF THE TRANSACTION
The Proposed Divestment will not have any material effects on the earnings and net assets of RGBI Group for the financial year ending 31 December 2010. As this is a cash transaction, it has no effect on RGBIs gearing, share capital and substantial shareholders shareholding.
6. APPROVAL OF SHAREHOLDERS AND RELEVANT GOVERNMENT AUTHORITIES
The Proposed Divestment is not subject to approval of the shareholders of RGBI.
7. DIRECTORS, MAJOR SHAREHOLDERS AND PERSON CONNECTED TO DIRECTORS AND MAJOR SHAREHOLDERS INTERESTS
None of the directors and major shareholders of RGBI or persons connected to them have any interest direct and or indirect in the Proposed Divestment.
8. ESTIMATED TIME FRAME FOR THE COMPLETION OF THE PROPOSED DIVESTMENT
The Proposed Divestment has been completed today.
9. SALIENT AGREEMENT
No agreement has been entered into.
10. STATEMENT BY THE BOARD OF DIRECTORS
The Board of Directors, having considered all aspects of the Proposed Divestment, is of the opinion that the transaction is in the best interest of the Group.
This announcement is dated 6 December 2010. |