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Further to the announcements of 29 April 2008 and 15 January 2008 , Salcon Berhad ("Salcon" or "the Company") is pleased to announce that Nan An Salcon Water Company Limited ("Nan An Salcon") has on 26 May 2008 entered into a Concession Agreement with the People's Government of Nan An Municipality, Fujian Province, People's Republic of China for the Coastal 3-Town Water Intake Engineering Project on Build-Operate-Transfer basis ("Project").
Nan An Salcon shall be responsible for the design, construction, operation and maintenance of the Project, which is expected to be completed in September 2009. Nan An Salcon has been granted a 30-year concession to supply water to water plants in GuanQiao, ShuiTou and ShiJing towns of Nan An City and to collect payment thereform.
Nan An Salcon is a 65% subsidiary of Salcon Fujian (HK) Limited, a wholly-owned subsidiary of the Company.
The Project will not have any significant effect on the earnings or net assets of Salcon Group for the financial year ending 31 December 2008, and the share capital of the Company. However, it is expected to contribute positively to the future earnings of Salcon Group.
None of the Directors and/or major shareholders of the Company, or persons connected with them have any interest, direct or indirect, in the Project.
This announcement is dated 27 May 2008. |
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