1. Introduction
The Board of Directors of QL Resources Berhad ("Company") wishes to announce that its subsidiary, QL Livestock Farming Sdn. Bhd. ("QL Livestock") has on 19 November 2008 entered into a Sales and Purchase Agreement to acquire a parcel of land described as Serian Occupation Ticket 4993 measuring more or less 5.4960 hectares from related party namely Mr Ng Siew Thiam ("Vendor") for a total consideration of Ringgit Malaysia Six Hundred and Eighty Seven Thousand (RM687,000.00) only.
2. Details of the Proposed Acquisition & land
The total consideration will be funded by internally generated funds of QL Livestock. The consideration was arrived after taking into consideration the valuation of the land by CH Williams Talhar Wong & Yeo Sdn. Bhd. ("CH Willam") , an independent valuer dated 22 May 2008.
Based on CH William's valuation report, the market value of the leasehold land on the basis that the vacant agriculture land is free from all encumbrances is RM687,000.00.
The original cost of investment for the said land as at 13 March 1997 was RM69,200.00.
3. Salient terms of acquisition
QL Livestock shall upon execution of the Sale and Purchase Agreement pay the lawyer as stakeholder the whole lump sum of RM687,000 and are irrevocably authorised to release the purchase consideration to the Vendor upon :
i) delivery of vacant possession of the said land by the Vendor;
ii) the submission of the Memorandum of Transfer (MOT) to the appropriate land registry and numbers obtained.
4. Rationale
The Related Party Transaction is to acquire the land to further expand the Company's farming business.
5. Financial Impact
There is no material effect on net profit, earnings per share, net assets, gearing, share capital and substantial shareholdings of the Company.
6. Approvals Required
QL Livestock obtained approval from its Shareholders and Board of Directors on the proposed acquisition. No other approval from the shareholders and authorities of the Company is required for the Related Party Transaction.
7. Interests of Directors, Substantial Shareholders and Persons Connected To Them
The Vendor of the Proposed acquisition is a Director of the QL Livestock. None of the other Directors and interested persons connected to them are interested in the proposed acquisition. The interested director has abstained from stating an opinion in relation to the transaction.
8. Statement by the Board of Directors
The Board of Directors (save for the interested Director) is of the opinion that the Related Party Transaction is in the best interest of the Company.
9. Date of Completion
The proposed acquisition is expected to be completed by end Dec 2009.
10. Departure from the Guidelines
To the best knowledge of the Company, the proposed acquisition has not departed from the Offering of Equity & Equity Linked Securities Issued by the Securities Commission.
11. Documents for inspection
The valuation report for the proposed acquisition will be made available for inspection at the registered office of the Company at No.16A, Jalan Astaka U8/83, Bukit Jelutong, 40150 Shah Alam, Selangor during normal business hours for a period of one month from the date of announcement.
This announcement is dated 27 November 2008.
