Transactions (Chapter 10 of Listing Requirements) Non-Related Party Transactions

 

DOMINANT ENTERPRISE BERHAD

 

Type

Reply to query

Reply to Bursa Malaysia's Query Letter - Reference ID

TE-130308-39163

Subject

Transactions (Chapter 10 of Listing Requirements)
Non-Related Party Transactions

Description

Acquisition of Land by wholly-owned subsidiary, Ecopanel Industries Sdn. Bhd.

Query Letter Contents

We refer to the Company's announcement dated 7 March 2013, 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:-

1. Further details on the market value of the surrounding properties that were
used to arrive at the Purchase Price.
2. The breakdown in which the Purchase Price will be financed by internal
generated fund and bank borrowings.
3. The additional information on the land as required under item (1) and (2),
Part C of Appendix 10B of the Main Market Listing Requirements, where
applicable.

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


Yours faithfully



HENG TECK HENG
Head, Issuers
Listing Division
Regulation
IJ/TEK
c.c:- General Manager and Head, Market Surveillance, Securities Commission
(via fax)

Reference is made to our Announcement dated 7 March 2013.
Dominant Enterprise Berhad ("DOMINAN") wishes to furnish the following additional information as per Bursa Malaysia Securities Berhad’s query letter dated 8 March 2013 (Ref : TE-130308-39163) for public release.

1. Further details on the market value of the surrounding properties that were used to arrive at the Purchase Price

There was an offer for a piece of land (Converted to Industrial Land) located at the same District of Ulu Langat ie. HS(D) 7901, measuring 839,600.7 square feet at an offer price of RM36 per square feet. As compared to the land acquired by ECOPANEL which is agriculture land but located in Industrial Zone at costs of RM 23 per square feet, the decision of acquiring are as follows:

(a) it can be converted to Industrial Land and ECOPANEL has intention to build a Factory and Warehouse for its own manufacturing activity use
(b) the price is considered cheaper as compared to the converted land mentioned above; and
(c) the location is more convenient to ECOPANEL staff as it is comparatively nearer to its existing Warehouse and Office.


2. The breakdown in which the Purchase Price will be financed by internal generated fund and bank borrowings are as follows :

Internal Generated Fund - Approximately RM4,100,000.00
Bank Borrowings - Approximately RM6,200,000.00

3. Additional information on the land as required under item (1) and (2), Part C of Appendix 10A of the Main Market Listing Requirements

Item (1), Part C of Appendix 10A

(a) The postal address or identification of the real estate is Geran 20713, Lot 9327 Mukim of Kajang, District of Ulu Langat, Selangor.

(b) The land is an agriculture land measuring approximately 449,052.2 square feet.

(c) The land existing is an Oil Palm Plantation. After the Acquisition, the land will be converted to Industrial Land to build Factory and Warehouse for own use.

(d) There is no building erected on the land.

(e) The land is a Freehold land.

(f) No Valuation was carried out.

(g) Net Book Value based on Audited Financial Statement is not available.

(h) The land is free from encumbrances.

Item (2), Part C of Appendix 10A

(a) Presently the land is an Oil Palm Plantation. After the Acquisition, the land will be converted to Industrial land to build Factory and Warehouse for own use.


(b) The land is an Oil Palm Plantation.

(c) Information on the maturity of the Oil Palm Trees is not available

(d) Information on production of the Oil Palm Trees for the past 3 years is not available.


Reference is made to our earlier Announcement on 7 March 2013, kindly be informed that the highest percentage ratio applicable to the Acquisition should be 6.93%.


This Announcement is dated 11 March 2013