Salcon Berhad ("Salcon" Or "Company") proposed Exemption From Section 7, Part Ii Of the Malaysian Code On Take-overs and Mergers, 1998 In Relation To The proposed Acquisition And Proposed Mandatory General Offer ("Proposed Exemption")

BackNov 14, 2007
General Announcement
Reference No MM-071114-67159

Submitting Merchant Bank
:
 MIMB INVESTMENT BANK BERHAD 
Company Name
:
 SALCON BERHAD 
Stock Name
:
 SALCON
Date Announced
:
 14/11/2007


Type : Announcement
Subject : SALCON BERHAD ("Salcon" or "Company")

PROPOSED EXEMPTION FROM SECTION 7, PART II OF THE MALAYSIAN CODE ON TAKE-OVERS AND MERGERS, 1998 IN RELATION TO THE PROPOSED ACQUISITION AND PROPOSED MANDATORY GENERAL OFFER ("PROPOSED EXEMPTION")

Contents :

We refer to the announcement dated 28 August 2007 in relation to the Proposed Acquisition and Proposed Mandatory General Offer.

On behalf of the Board of Directors of Salcon, MIMB Investment Bank Berhad (formerly known as Malaysian International Merchant Bankers Berhad) ("MIMB") is pleased to announce that the Securities Commission has, vide its letter dated 14 November 2007, approved an exemption to Salcon from compliance with Section 7 of the Malaysian Code on Take-Overs and Mergers, 1998 ("Code"). Pursuant to Section 7 of the Code, Salcon is prohibited from appointing any director to the Board of Directors of Oriental Capital Assurance Berhad ("Oriental") before Salcon sends an offer document to the shareholders of Oriental. The Proposed Exemption is to enable Salcon to appoint two (2) new directors representing Salcon, namely Dato' Leong Kok Wah ("Dato Leong") and Dato' Tee Tiam Lee ("Dato' Tee"), on the Board of Oriental prior to the despatch of the offer document to the shareholders of Oriental.

The said exemption is subject to Dato' Leong and Dato' Tee abstaining from deliberating on matters pertaining to the operations of Oriental, prior to the Share Sale Agreement in relation to the Proposed Acquisition becoming unconditional, and the Proposed Mandatory General Offer, before the despatch of the offer document.

Nonetheless, the appointment of Dato' Leong and Dato' Tee is still subject to the approval from Bank Negara Malaysia and hence can only be effected after such approval is obtained.

This announcement is dated 14 November 2007.