News
Proposed Reduction Of Equity Interest From 100% To 76.6% In Asbina Hotel & Property Sdn Bhd ("AHP")
BackOct 22, 1999
| General Announcement Reference No CU-991021-51487 |
| Submitting Merchant Bank | : | Not Applicable |
| Company Name | : | ADVANCE SYNERGY BERHAD |
| Stock Name | : | ASB |
| Date Announced | : | 22/10/1999 |
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| Type | : | Announcement |
| Subject | : | PROPOSED REDUCTION OF EQUITY INTEREST FROM 100% TO 76.6% IN ASBINA HOTEL & PROPERTY SDN BHD ("AHP") |
Contents :
1. INTRODUCTION
The Board of Directors of Advance Synergy Berhad ("ASB") wishes to announce that an agreement dated 22 October 1999 has been entered into between Alangka-Suka Hotels & Resorts Berhad ("ASHR"), a subsidiary of ASB, AHP, a wholly owned subsidiary of ASHR, and Ken Grouting System Specialist Sdn Bhd ("KGS").
Pursuant to the agreement, KGS shall subscribe for 3,556,905 ordinary shares of RM1.00 each at par representing 23.4% equity interest in AHP by way of capitalisation of the amount due from AHP to KGS ( hereinafter referred to as "Proposed Subscription").
2. DETAILS OF THE PROPOSED SUBSCRIPTION
The principal activity of AHP is the management and operation of hotels and resorts. AHP has entered into a long term lease agreement to operate a hotel in Cambodia to be known as Monorom Holiday Villa Hotel, Cambodia ("MHVH").
Under the agreement, AHP's present issued and paid-up capital of RM25,000.00 comprising 25,000 ordinary shares of RM1.00 each shall be increased to RM15,200,000.00 through the issuance of 15,175,000 new ordinary shares of RM1.00 each at par. Out of the new issue of shares, KGS shall subscribe for 3,556,905 new ordinary shares of RM1.00 each at par representing 23.4% equity interest in the enlarged issued share capital by way of capitalisation of the amount due from AHP to KGS. The remaining 11,618,095 new ordinary shares of RM1.00 each shall be subscribed by ASHR through capitalisation of the inter-company advances due from AHP. After the Proposed Subscription, ASHR's existing equity interest in AHP of 100% will be reduced to 76.6%.
3. RATIONALE
The Proposed Subscription will ease the cash flows of AHP to enable the completion of the renovation and refurbishment works of MHVH before the year end. AHP is targeting to commence operations in Cambodia in the first quarter of next year.
4. FINANCIAL EFFECTS
4.1 Issued and Paid-up Share Capital
The Proposed Subscription will not have any effect on the issued and paid-up share capital of ASB.
4.2 Earnings and Net Tangible Assets
The Proposed Subscription is not expected to have any material effects on the earnings and net tangible assets of the ASB Group for the financial year ending 31 December 1999. The Proposed Subscription is also not expected to have any material effects on the future earnings of the Group as the investment in MHVH by AHP will be reduced accordingly with the participation of KGS.
5. APPROVALS REQUIRED
The Proposed Subscription is not subject to any other approvals.
6. DIRECTORS' AND SUBSTANTIAL STOCKHOLDERS' INTERESTS
No director or substantial stockholder of ASB has any interest, direct or indirect, in the Proposed Subscription.