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Salcon Berhad (“Company”) is pleased to announce that the Company has on 1 December 2009 entered into a Co-operation Agreement with the People’s Government of Yizheng, Jiangsu Province, People’s Republic of China for integrating water and wastewater projects in the Yizheng City and its neighbourhoods (“Water Integration Scheme) through a sino-foreign joint venture company to be known as Jiangsu Salcon Water Environment Development Company Limited (or such other names as may be approved by the relevant authorities) (“JSWED”) to be set up.
The principles for the Water Integration Scheme include:-
(a) the existing water supply and wastewater treatment projects in Yizheng City (“Water and Wastewater Projects”) and the water supply project in the
central region of the Yizheng City, which is under construction (“Central Region Water Project”), be integrated into the JSWED;
(b) the assets of the Water and Wastewater Projects be evaluated by a valuer to be confirmed by both parties and the assets value be mutually agreed;
(c) Salcon Jiangsu (HK) Limited (“SJHK”), a wholly-owned subsidiary of the Company, and JSWED or its subsidiary will not assume liabilities in relation to
the Water and Wastewater Projects (“Projects Related Liabilities”). Liabilities other than Project Related Liabilities, if any, to be assumed by JSWED, will be separately negotiated by the parties concerned. The People’s Government of Yizheng shall settle Projects Related Liabilities;
(d) the Central Region Water Project will be evaluated by a valuer to be confirmed by both parties and will be acquired by the JSWED or its subsidiary. The details on the acquisition of the Central Region Water Project will be separately discussed and agreed by both parties; and
(e) the People’s Government of Yizheng shall compensate the relevant party, if any, arising from the acquisition of the Water and Wastewater Projects and Central Region Water Project. SJHK and JSWED or its subsidiary will not be responsible for the compensation, if any, unless otherwise agreed by both parties that the compensation be settled by the JSWED or its subsidiary.
None of the Directors and/or major shareholders of the Company, or persons connected with them have any interest, direct or indirect, in the Water Integration Scheme including the Central Region Water Project. |
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