Announcement Details/Table Section :
The Board of Directors of ASB wishes to announce that ASB had via its wholly-owned subsidiary, EDSB, entered into an agreement to acquire 100% equity interest in DAMA TCM, comprising 380,000 issued and fully paid-up ordinary shares of RM1.00 each for a cash consideration of RM600,000.00 (“Proposed Acquisition”) to be funded from internal resources, from the existing shareholders of DAMA TCM, namely, Lee Thiam Huat, Mah Pik Hsia, Yeo Show Kau, Fu Shih Shi and Chin Kim Fook.
DAMA TCM was incorporated in Malaysia on 20 October 2005 and is principally engaged in the business of traditional Chinese medicine consultation and related services. The existing authorised share capital of DAMA TCM stands at RM500,000.00 and this will be increased to RM1.0 million to facilitate the proposed increase of the issued and paid-up share capital of DAMA TCM to RM980,000.00 following the injection of RM600,000.00 additional funds from EDSB as working capital.
The Proposed Acquisition is part of the Group’s expansion plans to invest in new businesses with growth potential.
The completion of the Proposed Acquisition is subject to satisfactory due diligence on DAMA TCM.
Concurrently with the completion of the Proposed Acquisition, a service contract will be entered into with Lee Thiam Huat to appoint him as the Chief Operating Officer of DAMA TCM. To incentivise and ensure a long term commitment, 196,000 ordinary shares of RM1.00 each representing 20% of the enlarged share capital of DAMA TCM, will be transferred to Lee Thiam Huat at a nominal value of RM1.00 (“Proposed Transfer”). EDSB’s equity interest in DAMA TCM will be reduced to 80% after completion of the Proposed Transfer.
The Proposed Acquisition is not expected to have any material impact on the earnings per share and net assets per share of ASB Group for the financial year ending 31 December 2011.
None of the directors, major shareholders and/or persons connected with the directors and major shareholders of ASB has any interest, direct or indirect, in the Proposed Acquisition.
This announcement is dated 15 September 2011
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