News
Proposed Investment In The Internet Business Through Subscription For Cash For New Shares Representing 60% Equity Interest In The Proposed Joint Venture Company, E-go.Com Sdn Bhd
BackOct 29, 1999
| General Announcement Reference No CU-991028-45491 |
| Submitting Merchant Bank | : | Not Applicable |
| Company Name | : | ADVANCE SYNERGY BERHAD |
| Stock Name | : | ASB |
| Date Announced | : | 29/10/1999 |
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| Type | : | Announcement |
| Subject | : | PROPOSED INVESTMENT IN THE INTERNET BUSINESS THROUGH SUBSCRIPTION FOR CASH FOR NEW SHARES REPRESENTING 60% EQUITY INTEREST IN THE PROPOSED JOINT VENTURE COMPANY, e-go.com Sdn Bhd |
Contents :
1. INTRODUCTION
The Board of Directors of Advance Synergy Berhad ("ASB") is pleased to announce that Nagapura Management Corporation Sdn Bhd, a wholly-owned subsidiary, has entered into a joint venture agreement dated 29 October 1999 to subscribe for 2,700,000 ordinary shares of RM1.00 each at par in cash representing 60% equity interest in a proposed joint venture company to be incorporated under the name of e-go.com Sdn Bhd ("e-go.com" or "the JV Company") (hereinafter referred to as "Proposed Joint Venture").
The remaining equity interest of 40% in e-go.com comprising 1,800,000 ordinary shares of RM1.00 each shall be subscribed for consideration other than cash by Medilina Services Sdn Bhd, promoters of the Proposed Joint Venture.
The JV Company will focus on transaction based e-commerce utilizing its Message Routing Engine ("MRE"), a proprietary internet application developed locally that allows exchanging of secured messages in the world wide web and the MRE will serve as the platform for all the e-commerce applications and services. By the second quarter of next year, e-go.com will launch two portals to provide services to the financial, and hotel and travel sectors.
2. RATIONALE FOR THE PROPOSED JOINT VENTURE
The advances made in information technology and the achievement of Malaysia in the field of telecommunication, multimedia and infrastructure in recent years have presented excellent growth opportunities in the internet business. This coupled with the exponential increase in internet users, high awareness and governmental support would mean that demand could accelerate in the future. The Proposed Joint Venture provides an opportunity and a platform for ASB to capitalise on this potential growth market.
3. FINANCIAL EFFECTS
3.1 Issued and Paid-up Share Capital
The Proposed Joint Venture will not have any effect on the issued and paid-up share capital of ASB.
3.2 Earnings and Net Tangible Assets
The Proposed Joint Venture 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. However, the Directors of ASB expect the Proposed Joint Venture to contribute positively to the future earnings of the Group.
4.0 APPROVALS REQUIRED
The Proposed Joint Venture is subject only to the approval of the Foreign Investment Committee.
5.0 DIRECTORS' AND SUBSTANTIAL STOCKHOLDERS' INTERESTS
No director or substantial stockholder of ASB has any interest, direct or indirect, in the Proposed Joint Venture.