Proposed Renounceable rights issue of up to 233,249,942 New ordinary shares of RM0.50 each in salcon ("Rrights Shares") with Up to 116,624,971 Free Detachable Warrants ("Warrants"), on The Basis of two (2) rights shares with One (1) Warrant For Every Two (2) Existing Ordinary Shares Of RM0.50 Each In Salcon ("Salcon Shares" Or "Shares") Held On A Date To Be Determined Later ("Proposed Rights Issue With Warrants")

BackMar 05, 2007

General Announcement
Reference No MM-070305-62829

Submitting Merchant Bank
:
 MIMB INVESTMENT BANK BERHAD 
Company Name
:
 SALCON BERHAD 
Stock Name
:
 SALCON
Date Announced
:
 05/03/2007


Type : Announcement
Subject : PROPOSED RENOUNCEABLE RIGHTS ISSUE OF UP TO 233,249,942 NEW ORDINARY SHARES OF RM0.50 EACH IN SALCON ("RIGHTS SHARES") WITH UP TO 116,624,971 FREE DETACHABLE WARRANTS ("WARRANTS"), ON THE BASIS OF TWO (2) RIGHTS SHARES WITH ONE (1) WARRANT FOR EVERY TWO (2) EXISTING ORDINARY SHARES OF RM0.50 EACH IN SALCON ("SALCON SHARES" OR "SHARES") HELD ON A DATE TO BE DETERMINED LATER ("PROPOSED RIGHTS ISSUE WITH WARRANTS")

Contents :

We refer to the announcement made on behalf of the Board of Directors of Salcon by MIMB Investment Bank Berhad ("MIMB") on 15 January 2007, 15 February 2007 and 16 February 2007 in relation to the abovementioned Proposed Rights Issue with Warrants.

On behalf of the Board of Directors of Salcon, MIMB is pleased to announce that the Securities Commission ("SC") had, vide its letter dated 2 March 2007, approved the following:-

(a) the renounceable rights issue of up to 233,249,942 new ordinary shares of RM0.50 each in Salcon with up to 116,624,971 free detachable warrants on the basis of two (2) rights shares with one (1) warrant for every two (2) existing ordinary shares of RM0.50 each held in Salcon;

(b) the issuance of new Salcon ordinary shares upon exercise of the new warrants; and

(c) the listing of and quotation for the new Salcon ordinary shares, new warrants and new Salcon shares upon exercise of the new warrants on the Main Board of Bursa Malaysia Securities Berhad.

The SC's approval of the Proposed Rights Issue with Warrants is subject to the condition that MIMB and Salcon fully comply with all relevant requirements stipulated in the Policies and Guidelines on Issue/Offer of Securities pertaining to the implementation of the Proposed Rights Issue with Warrants.

This announcement is dated 5 March 2007.