- Introduction
The Board of Directors of Seremban Engineering Berhad ( SEB or the Company ) wishes to announce that the Company had on 9 February 2012 subscribed for a total of 300,000 ordinary share of RM1.00 each in NESB, representing 40% of the total issued and paid up capital of NESB ( Equity Investment in NESB ) for a total cash consideration of RM300,000.
In relation thereto, as at 9 February 2012, NESB became an associate of SEB.
- Information on NESB
NESB is a private limited company incorporated in Malaysia under Companies Act, 1965 on 21 March 2011.
Presently, it has an authorised share capital of RM1,000,000 ordinary shares of RM1.00 each, of which 750,000 ordinary share of RM1.00 each have been issued and fully paid-up.
NESB is principally involve in the fabrication and installation of process equipment, piping, steel structure, skid, tanks, silo, auto/manual blasting and painting mainly for oil and gas and other industries.
- Rationale for the Equity Investment in NESB.
The rationale of the Equity Investment in NESB will placed SEB in the better involvement in oil and gas industries.
- Financial Effects of the Equity Investment in NESB
The Equity Investment in NESB will not have any material effect on the share capital, substantial shareholders shareholdings, gearing and net assets of the SEB Group.
- Approval Required
The Equity Investment in NESB is not subject to the approval of shareholders of SEB or any other relevant regulatory authority.
- Directors and major shareholders interest
None of the Directors and/or major shareholders of SEB, and/or any persons connected to them, have any interest, direct or indirect, in the Equity Investment in SEB.
- Statement by the Directors
Having considered all aspects of the Equity Investment in NESB, the Board is of the opinion that the Equity Investment in NESB is in the best interest of the SEB Group.
This announcement is dated 9 February 2012.