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Salcon Berhad's wholly owned subsidiary, Salcon Engineering Berhad ("SEB") had on 31 October 2003 entered into an Agreement to subscribe for 200,000 new ordinary shares of RM1.00 each in Tricol Engineering Sdn. Bhd. ("Tricol") representing a 40% equity shareholding for RM200,000.
Tricol is a company with limited liability duly incorporated in Malaysia with an authorised share capital of RM500,000 and a current paid-up capital of RM300,000. Its business activity is to provide customers with design build and construction services relating to the palm oil industries and to carry on the sale and trading activities of related products.
Tricol will reap synergistic benefits from the participation of its shareholders who have complementary areas of strength and experience in the palm oil industry. It will leverage on these to capitalise on the growing opportunities in the regional palm oil industry.
Subsequent to the transfer of focus of its agro industrial business to Tricol, SEB will continue to focus on its core business in the water and wastewater sectors.
SEB will fund the subscription through internally generated funds.
The share subscription will not have any effect on the issued and paid-up capital of the Company. There is no expected material impact on the financial performance of Salcon Berhad for the current financial year arising from the Agreement.