With reference to the Company’s earlier announcements dated 22 November 2010, 28 February 2011 and 29 April 2011, the Board of Directors of Salcon wishes to announce that arising from the reduction to the Disposal consideration from RMB238 million (equivalent to approximately RM112.26 million based on an exchange rate of RM1.00: RMB2.12) to RMB202.62 million (equivalent to approximately RM95.58 million based on an exchange rate of RM1.00: RMB2.12), the Disposal proceeds allocated for future investments (which are not yet utilised to-date) would consequentially be reduced as follows:
| Proposed Utilisation |
Original as per circular to shareholders dated 6 January 2011
|
Revised
|
Expected time frame for utilisation of proceeds from date of completion of Disposal
|
Status
|
 |
RM million
|
USD million *
|
USD million *
|
|
|
| Future investments |
101.06
|
32.27
|
26.95
|
Within 24 months
|
Pending utilisation
|
| Repayment of bank borrowings |
10.00
|
3.19
|
3.19
|
Within 12 months
|
Utilised USD1.44 million as at to-date
|
| Defraying estimated expenses relating to the Disposal |
1.20
|
0.38
|
0.38
|
Within 3 months
|
Fully utilised
|
| Total |
112.26
|
35.84
|
30.52
|
|
|
Note:
* While the original Disposal consideration was agreed at RMB238 million, it was paid to Salcon in USD (based on the exchange rate of USD1 : RMB6.63979) and the Company had continued to hold the proceeds in USD since then. Accordingly, the original and revised Disposal proceeds are shown in USD to avoid any discrepancies due to currency conversion.
For consistency, the abbreviations used above are the same as those previously defined in the Company’s announcement dated 22 November 2010, 28 February 2011 and 29 April 2011.
