| |
- PROPOSED RESTRUCTURING SCHEME DISCONTINUED
- SPECIAL DIVIDEND PROPOSED |
|
| PacificMas Berhad ("PacificMas") wishes to announce that it has today received a letter from Great Eastern Holdings Limited to discontinue further discussions on the Proposed Restructuring Scheme, which was first announced on 21 February 2003. In the Great Eastern's letter which was received at 3.09 p.m. today it was stated inter-alia as follows:- |
| |
"As you are aware, due to the complexity in structuring the Proposed Restructuring Scheme, the discussions had not been easy and had resulted in the protracted progress of the proposed transaction. We wish to thank you for your patience and understanding in respect of this.
|
| |
After further internal deliberation and careful consideration, we regret to inform you that we wish to discontinue further discussions on the Proposed Restructuring Scheme." |
|
| Following the discontinuation of the Proposed Restructuring Scheme, the Board of Directors of PacificMas has decided to declare an interim dividend (to be called a Special Dividend) of RM1.50 gross per share less tax to eligible shareholders, subject to the approval of the relevant authorities. This Special Dividend is to return some of the excess cash balance from the disposal of the banking business in 2001 ("Cash Balance") which had been set aside for future investment in new businesses (including the Proposed Restructuring Scheme). The utilisation of this Cash Balance is subject to the approval of the Securities Commission. |
| The Board wishes to emphasise that the activities and operations of the PacificMas Group will not be affected by the discontinuation of the Proposed Restructuring Scheme. In fact, PacificMas Group has been able to consistently perform well, with Group shareholders' funds expanding from RM833 million as at end-2002 to RM879 million as at end-2005. For the financial year 2006, Group net profit after tax increased by 12% by the end of November 2006, compared with the same period last year. |
| The Board will now review the capital management of the Group as well as consider various opportunities for expansion and growth. |
| Oversea-Chinese Banking Corporation Limited ("OCBC") is a substantial shareholder of Great Eastern Holdings Limited. |
| OCBC is a substantial shareholder of PacificMas holding a total interest of 28.15%. |
| This announcement is dated 11 December 2006. |
| |
| |
