News

Advance Synergy Berhad ("ASB" Or "The Company") Proposed Acquisition Of The Remaining 10% Equity Interest In Alor Setar Holiday Villa Sdn Bhd For A Cash Consideration Of RM1,521,250.00

BackAug 08, 2006
General Announcement
Reference No AS-060808-61241
Company Name : ADVANCE SYNERGY BERHAD 
Stock Name : ASB
Date Announced : 08/08/2006


Type : Announcement
Subject : ADVANCE SYNERGY BERHAD ("ASB" or "the Company")
Proposed Acquisition of the remaining 10% equity interest in Alor Setar Holiday Villa Sdn Bhd for a cash consideration of RM1,521,250.00

Contents :

We wish to inform the Exchange that the Company's 99.63%-owned subsidiary, Alangka-Suka Hotels & Resorts Berhad ("ASHR"), has agreed to acquire 1,217,000 ordinary shares of RM1.00 each in Alor Setar Holiday Villa Sdn Bhd ("ASHV") ("Acquisition Shares"), representing 10% of the total issued and paid-up share capital of ASHV not already owned by ASHR, from Che Din Holdings Sdn Bhd ("CDH") for a cash consideration of RM1,521,250.00 ("the Purchase Price") ("Proposed Acquisition") to be funded from internal resources. The Purchase Price was arrived at on a willing buyer and willing seller basis.
 
The Acquisition Shares will be acquired free from all liens, pledges, charges, mortgages and any other encumbrances whatsoever with all rights attached thereto including any dividend, bonus or rights issue that may be declared as from the date of completion of the Proposed Acquisition.

The Proposed Acquisition will effectively provide ASHR with full control over ASHV as ASHV will be a wholly-owned subsidiary of ASHR and a 99.63%-owned subsidiary of ASB.
 
ASHV is a company incorporated in Malaysia on 23 February 1995 and has an authorised share capital of RM25,000,000.00 comprising 25,000,000 ordinary shares of RM1.00 each, of which 12,170,000 ordinary shares have been issued and fully paid-up. ASHV operates a hotel property known as Holiday Villa Alor Setar.
 
CDH is a company incorporated in Malaysia and has an authorised share capital of RM250,000.00 comprising 250,000 ordinary shares of RM1.00 each, of which 240,003 ordinary shares have been issued and fully paid-up. CDH is principally engaged in property development. CDH acquired the Acquisition Shares on 4 November 2003 at par value of RM1.00 per share.

The Proposed Acquisition has no effect on the share capital and major stockholders' stockholdings of ASB as it does not involve any issuance of securities.

The Proposed Acquisition is not expected to have any material impact on the earnings per stock unit and net assets per stock unit of ASB Group for the financial year ending 31 December 2006.

CDH is a related party to the Proposed Acquisition by virtue of CDH being a major shareholder of ASHV and a person connected to Dato' Abdul Halim Bin Che Din who is a director of ASHV. Dato' Addul Halim is a director of CDH and also holds a controlling interest in CDH.

Save as disclosed above, none of the directors, major stockholders and/or persons connected with the directors and major stockholders of ASB has any interest, direct or indirect, in the Proposed Acquisition.

The Board of Directors of ASB, after careful deliberation, is of the opinion that the Proposed Acquisition is in the best interests of ASB.

The Proposed Acquisition is not subject to the approval of stockholders of ASB and any other relevant government authorities.


[This announcement is dated 8 August 2006]