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Concession Agreement Between Changzhou City Tian Ning District Diao Zhuang Street Office And Salcon Changzhou (HK) Limited ("SCHK"), A Wholly-Owned Subsidiary Of Salcon Berhad Asset Transfer Agreement Between Changzhou Southeast Industrial Wastewater Treatment Plant ("CSIWTP") And SCHK

BackMar 25, 2011
Date Announced
:
25/03/2011  

 

Type
:
Reply to query
Reply to Bursa Malaysia's Query Letter - Reference ID
:
TE-110322-63921
Subject
:
CONCESSION AGREEMENT BETWEEN CHANGZHOU CITY TIAN NING DISTRICT DIAO ZHUANG STREET OFFICE AND SALCON CHANGZHOU (HK) LIMITED (“SCHK”), A WHOLLY-OWNED SUBSIDIARY OF SALCON BERHAD

ASSET TRANSFER AGREEMENT BETWEEN CHANGZHOU SOUTHEAST INDUSTRIAL WASTEWATER TREATMENT PLANT (“CSIWTP”) AND SCHK

Description
:

We refer to the letter from Bursa Malaysia Berhad (“Bursa Malaysia”) dated 24 March 2011 in relation to our announcement on 21 March 2011 on the above matter. The Board of Directors of Salcon Berhad wishes to furnish herewith the following additional information as requested in the aforementioned letter from Bursa Malaysia:-

1. The cost of upgrading of the facilities of the WasteWater Treatment Plant ("WWTP") will be funded by bank borrowing.

2. The expected commencement and completion dates of upgrading of the facilities of the WWTP are 1 June 2011 and 28 Feb 2012 respectively.

3. The approximate age of the WWTP is 10 years and the plant had been in operation since 2000.

4. There is no valuation being carried out on the WWTP.

5. The Concession would have good prospects given the rapid industrialization in the People’s Republic of China. In addition, with the new environmental policy promulgated by the municipal government to conserve the environment, existing industrial wastewater facilities would have to be upgraded to meet the required standards, thus leading to good business opportunities in this area.


Query Letter
content
:
We refer to your announcement dated 21 March 2011 in respect of the
abovecaptioned matter.


In this connection, kindly furnish Bursa Malaysia Securities Berhad ("Bursa
Securities") with the following additional information for public release:-

(1) The source of funding in relation to the cost to be incurred for the
upgrading of the facilities of the WasteWater Treatment Plant ("WWTP").

(2) The expected commencement and completion dates of the upgrading of the
facilities of the WWTP.

(3) The approximate age of the WWTP.

(4) Whether any valuation was carried out on the WWTP; if so, the name of the
independent registered valuer, date and method of valuation and quantification
of the market value.

(5) The prospects of the Concession / Project.


Kindly furnish Bursa Securities with your reply within one (1) market day from
the date hereof.






Yours faithfully



TAN YEW ENG
Head, Issuers
Listing Division
Regulation



TYE/TEK
c.c:- Head, Market Surveillance Department, Market Supervision Division,
Securities Commission (via fax)