Proposed Disposal Of 40,345,802 Shares Of Hk$1.00 Each Fully Paid In Salcon Linyi (HK) Limited

BackApr 29, 2016
Type Reply to Query
Reply to Bursa Malaysia's Query Letter - Reference ID IQL-28042016-00003
Subject PROPOSED DISPOSAL OF 40,345,802 SHARES OF HK$1.00 EACH FULLY PAID IN SALCON LINYI (HK) LIMITED
Description

SALCON BERHAD (SALCON OR THE COMPANY) PROPOSED DISPOSAL OF 40,345,802 SHARES OF HK$1.00 EACH FULLY PAID IN SALCON LINYI (HK) LIMITED, REPRESENTING 100% OF THE TOTAL ISSUED AND PAID-UP SHARE CAPITAL OF SALCON LINYI (HK) LIMITED BY SALCON AND SALCON WATER (ASIA) LIMITED, A 60%-OWNED SUBSIDIARY OF SALCON, TO ORIENT HARMONY HOLDINGS LIMITED

Query Letter Contents

We refer to your Company’s announcement dated 26 April 2016, in respect of the aforesaid matter.

In this connection, kindly furnish Bursa Securities with the following additional information for public release:-

1.            The net assets and net profit of SLHK based on its latest audited accounts.

2.            The details of future investments and breakdown of the proceeds that will be utilised for each component of future investments.

3.            The details of the working capital and breakdown of the proceeds that will be utilised for each component of working capital.

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

Yours faithfully,

 

TAN YEW ENG
Vice President, Issuers
Listing Division, Regulation

TYE/yls

Cc : Market Surveillance Dept. , Securities Commission (via fax)

Further to the Company’s announcement of 26 April 2016 and the letter from Bursa Malaysia Securities Berhad (“Bursa Securities”) dated 28 April 2016 in relation to the disposal of 40,345,802 shares of HK$1.00 each fully paid in Salcon Linyi (HK) Limited, representing 100% of the total issued and paid-up share capital of Salcon Linyi (HK) Limited by Salcon and Salcon Water (Asia) Limited, a 60%-owned subsidiary of Salcon, to Orient Harmony Holdings Limited, Salcon wishes to provide additional information as follows:-

1. Details of future investments and breakdown of the proceeds that will be utilised for each component of future investments

Salcon has yet to identify the future investment. The proposed future investment activities may include acquisition of strategic investments and collaborations, joint ventures or alliances. The proposed investment activities may or may not be in similar or complementary industries to Salcon and its subsidiaries’ (“Group”) existing businesses.

In the event shareholders’ approval is required pursuant to the Bursa Malaysia Securities Berhad Main Market Listing Requirements (“Main LR”) for the strategic investments, such approval will be sought as per the provisions of the Main LR. Any excess/shortfall in the actual amount to be utilised for future investments would be adjusted to/from working capital.

2. Details of working capital and breakdown of the proceeds that will be utilised for each component of working capital

Working capital include day-to-day operations to support the Group's existing business operations which shall include, but not limited to, the payment of trade and other payables, and management, employees and marketing expenses. The breakdown of proceeds to be utilised for each component of working capital has yet to be determined at this juncture. Moreover, the amount to be utilised by each component of working capital may differ subject to the operating requirements at the time of utilisation.

 


Announcement Info

Company Name SALCON BERHAD
Stock Name SALCON
Date Announced 29 Apr 2016
Category General Announcement for PLC
Reference Number GA1-29042016-00068