News
Asbina Hotel & Property Sdn Bhd ("AHP")
BackFeb 28, 2001
| General Announcement Reference No CU-010228-50035 |
| Submitting Merchant Bank | : | Not Applicable |
| Company Name | : | ADVANCE SYNERGY BERHAD |
| Stock Name | : | ASB |
| Date Announced | : | 28/02/2001 |
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| Type | : | Announcement |
| Subject | : | ASBINA HOTEL & PROPERTY SDN BHD ("AHP")
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Contents :
1. INTRODUCTION
The Board of Directors of Advance Synergy Berhad ("ASB") wishes to announce that an agreement dated 27 February 2001 has been entered into between Alangka-Suka Hotels & Resorts Berhad ("AHR"), a subsidiary of ASB, and Ken Grouting Sdn Bhd ("KGS").
Pursuant to the agreement, AHR shall acquire 3,556,905 ordinary shares of RM1.00 each representing the remaining balance of 23.4% equity interest in AHP from KGS for a total cash consideration of RM3,966,485 (hereinafter referred to as "Proposed Acquisition").
2. DETAILS OF THE PROPOSED ACQUISITIONPursuant to the agreement, AHR shall acquire 3,556,905 ordinary shares of RM1.00 each representing the remaining balance of 23.4% equity interest in AHP from KGS for a total cash consideration of RM3,966,485 (hereinafter referred to as "Proposed Acquisition").
AHR holds 76.6% equity interest in AHP and 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. The hotel is currently operating as Monorom Holiday Villa Hotel, Cambodia ("MHVH").
Under the Proposed Acquisition, AHR's holding in AHP shall upon completion be increased to 15,200,000 ordinary shares of RM1.00 each representing 100% equity interest in AHP. The consideration of RM3,966,485 is arrived at on a willing buyer-willing seller basis and shall be paid in the following manner :-
a) RM1,000,000 shall be paid in cash within seven (7) days from the date of the agreement; and
b) The balance of RM2,966,485 shall be paid in three (3) instalments with a final payment to be made by 31 December 2001.
Under the Proposed Acquisition, AHR's holding in AHP shall upon completion be increased to 15,200,000 ordinary shares of RM1.00 each representing 100% equity interest in AHP. The consideration of RM3,966,485 is arrived at on a willing buyer-willing seller basis and shall be paid in the following manner :-
a) RM1,000,000 shall be paid in cash within seven (7) days from the date of the agreement; and
3. RATIONALE FOR THE PROPOSED ACQUISITION
The Proposed Acquisition is to enable AHR to assume complete control in AHP in line with AHR's core business activities in the hotel industry.
4. FINANCIAL EFFECTS4.1 Issued and paid-up Share Capital
The Proposed Acquisition will not have any effect on the issued and paid-up share capital of ASB.
The Proposed Acquisition will not have any effect on the issued and paid-up share capital of ASB.
4.2 Earnings and Net Tangible Assets
The Proposed Acquisition 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 2001 and in the foreseeable future as MHVH had only commenced operations recently and the equity interest to be acquired represents only 23.4% in AHP currently held by the minority shareholder.
5. APPROVALS REQUIRED
The Proposed Acquisition 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 2001 and in the foreseeable future as MHVH had only commenced operations recently and the equity interest to be acquired represents only 23.4% in AHP currently held by the minority shareholder.
The Proposed Acquisition is not subject to any other approvals.
No director or substantial stockholder of ASB has any interest, direct or indirect, in the Proposed Acquisition.
(This announcement is dated 28 February 2001).
(This announcement is dated 28 February 2001).