Dec 14, 2011
TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS): NON RELATED PARTY TRANSACTIONS

 

General Announcement
Reference No BI-111213-58106
Company Name
:
 B.I.G. INDUSTRIES BERHAD
Stock Name
:
 BIG
Date Announced
:
 14/12/2011
Type
:
 Reply to query
Reply to Bursa Malaysia’s Query Letter – Reference ID
:
 IJ-111212-44138
Subject
:
TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS)
NON RELATED PARTY TRANSACTIONS
Description
:
PROPOSED DISPOSAL OF PROPERTY BY ALPHA BILLION SDN BHD, A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY
Query Letter
content
:
We refer to the Company’s announcement dated 9 December 2011, in respect of the
aforesaid matter.

In this connection, kindly furnish Bursa Malaysia Securities Berhad (“Bursa
Securities”) with the following additional information for public release:-

The identity of the directors and major shareholders of the Purchaser together
with their respective shareholdings;
The name of the Independent Registered Valuer, the date and method of valuation
and quantification of the market value;
The approximate area and age of the building erected on the land;
The details of the Company’s financial obligations that will be financed via
the proceeds from the Proposed Disposal as well as the timeframe for full
utilisation. If it is to be used for repayment of borrowings, to quantify the
effects on the Group’s gearing;
The rationale for disposing the property at a loss; and
Quantification of the loss per share arising from the Proposed Disposal.

Please furnish Bursa Securities with your reply within one (1) market day from
the date hereof.

Yours faithfully

IRWAN JOHARI
Senior Manager, Issuers
Listing Division
Regulation

/TEK

copy to:- General Manager & Head, Market Surveillance, Securities Commission
(via fax)
Announcement Details/Table Section :

 

The terms used herein shall, unless the context otherwise stated, bear the same meaning as those defined in the announcement dated 9 December 2011 in relation to the Proposed Disposal.

We refer to the letter from Bursa Malaysia Securities Berhad of 12 December 2011 on the Proposed Disposal.

The Company furnish the following additional information:-

1.    The directors and major shareholder of SEA Engineering are as follows:-

 Directors
Ch’ng Wee Lan (“CWL”)
Ch’ng Ping Lan (“CPL”)

Shareholder and Shareholdings 
Gransri Trading Sdn Bhd (“GTSB”) – 100%
(GTSB is wholly-owned by CWL and CPL)

2.    Name of Independent Registered Valuer : First Pacific Valuers Property Consultants Sdn Bhd
Date of valuation                     : 21 September 2011
Method of valuation                   : Comparison method of valuation
Market value                          : RM3,630,000.00 (excluding the building)

3.    The approximate total floor area and age of the building erected on the land is 6,362 square metres (68,480 square feet) and 5 ¾ years respectively.

4.    The proceeds from the Proposed Disposal will be utilised to part repay an unsecured term loan of RM33.5 million within three months from the date of the S&P Agreement.  The proceeds arising from the Proposed Disposal will lower the Group’s gearing by 7.80%.

5.    The rationale for the Proposed Disposal even though it is at a loss is to enable the Group to unlock its idle and non-productive investment and the proceeds could be utilised for repayment of its financial obligations; hence reducing its interest expense and improving its gearing ratio.

6.    The loss per share arising from the Proposed Disposal is RM0.03.

This announcement is dated 14 December 2011.