News
Kedah Marble Sdn Bhd ("KMSB") - Notice Of Winding-Up Petition
BackFeb 27, 2001
| General Announcement Reference No CU-010226-55452 |
| Submitting Merchant Bank | : | Not Applicable |
| Company Name | : | ADVANCE SYNERGY BERHAD |
| Stock Name | : | ASB |
| Date Announced | : | 27/02/2001 |
 |
|
|
| Type | : | Announcement |
| Subject | : | KEDAH MARBLE SDN BHD ("KMSB") - NOTICE OF WINDING-UP PETITION |
Contents :
The Board of Directors of Advance Synergy Berhad ("ASB") wishes to inform the Exchange that ASB has been notified by KMSB on 23 February 2001 that there is a Winding-up Petition against KMSB which has been fixed for hearing at the High Court of Malaya at Alor Setar, Kedah on 22 March 2001 (hereinafter referred to as "Petition"). The Petition which was dated 19 December 2000 was served on KMSB on 11 February 2001 by Ng Thoong Chen in respect of non-payment of a sum of RM626,100.00 due to him from KMSB.
ASB holds an equity interest of 70% in KMSB. However, the management control of KMSB is exercised by the minority shareholder, Perbadanan Kemajuan Negeri Kedah, pursuant to a shareholders' agreement and ASB does not exercise any significant influence over the Board of Directors of KMSB. Accordingly, the accounts of KMSB have not been consolidated with the accounts of ASB Group since the financial year then ended 30 September 1994.
Based on the audited accounts of KMSB for the financial year ended 31 December 1999, the net tangible assets ("NTA") value of KMSB was RM50,248,861. In view of the foregoing legal action against KMSB, the Directors of ASB propose to make a further provision for the diminution in value of ASB's investment in KMSB from its existing book value of RM48,557,500 to RM35,174,203 to reflect the proportionate NTA value of KMSB as at 31 December 1999. This will result in an exceptional loss of RM13,383,297 for the financial year ended 31 December 2000 and hence, ASB Group's NTA value per stock unit will be reduced by 3.96 sen. There will be no operational impact on ASB Group as the operations of KMSB are separate and independent of the Group.
ASB is currently seeking legal advice to oppose the Petition.
(This announcement is dated 27 February 2001).