News

Advance Synergy Berhad Proposed Disposal Of 49% Equity Interest In Ace Synergy Insurance Berhad (ACE) Comprising 49,000,000 Ordinary Shares of RM1.00 Each To Advance Synergy Capital Berhad (Formerly Known As United Merchant Group Berhad) (ASC) For A Total Cash Consideration Of RM71,000,000 (Proposed Ace Disposal)

Type	:	Announcement
Subject	:	ADVANCE SYNERGY BERHAD Proposed disposal of 49% equity interest in ACE Synergy Insurance Berhad (ACE) comprising 49,000,000 ordinary shares of RM1.00 each to Advance Synergy Capital Berhad (formerly known as United Merchant Group Berhad) (ASC) for a total cash consideration of RM71,000,000 (Proposed ACE Disposal)

Contents :

We refer to the announcement made on 13 July 2001 and 24 April 2002 in relation to the Proposed ACE Disposal.

On 25 October 2002, Southern Investment Bank Berhad (SIBB) announced that the Foreign Investment Committee (FIC) had via its letter dated 23 October 2002 stated that it has no objection for the Proposed ACE Disposal subject to ACE meeting at least 30% Bumiputera equity interest and to reduce its foreign equity interest to not more than 51% before 31 December 2003.

Subsequently, on 13 November 2002, SIBB had announced on behalf of the Board of Directors of ASC that ASC had on 8 November 2002, made an application to FIC seeking a waiver on the two conditions mentioned above (Application). To date, the decision on the Application is still pending. ASC will only be able to consider the completion of the Proposed ACE Disposal upon obtaining the decision from the FIC on the Application.

In view of above, ASC and ASB have agreed to a variation of payment terms of the Proposed ACE Disposal via letter dated 29 November 2002 (Variation Letter). The revision to the payment terms are as follows:


This announcement is dated 2 December 2002.