News

Related Party Transaction - QL Agroventures sdn. bhd. And M.b. Agriculture (Sabah) Sdn. Bhd.

Type	:	Announcement
Subject	:	Related Party Transaction - QL Agroventures Sdn. Bhd. and M.B. Agriculture (Sabah) Sdn. Bhd.

Contents :

1. Introduction

The Board of Directors of QL Resources Berhad (the "Company") wishes to announce that its wholly owned subsidiary, QL Agroventures Sdn. Bhd. has on 31st July 2007 entered into a related party transaction with M.B. Agriculture (Sabah) Sdn. Bhd. to take over its sublease of the native land from Mr Lungkis Bin Bariga for a total consideration of RM 1,146,590.50. The following are parcels of land located in the District of Papar (the "Related Party Transaction"):-.

a) NT023146189;
b) NT023099934;
c) NT023145824;
d) FR024025732; and
e) NT023121593

2. Related Party

M.B Agriculture (Sabah) Sdn. Bhd. is wholly owned by Ruby Technique Sdn. Bhd. which in turn is 77.67% and 22.33% owned by CBG Holdings Sdn. Bhd. ("CBG") and Farsathy Holdings Sdn. Bhd. ("Farsathy") respectively. CBG and Farsathy are major shareholders of QL.

The directors, shareholders and/or persons connected of CBG are as follows:
Chia Song Kun, Chia Song Kang, Chia Song Pou, Chia Song Swa, Chia Song Kooi, Cheah Yaw Song, Chia Song Phuan, Chia Teow Guan, Chia Mak Hooi, Chia Bak Lang, Chia Cheong Soong and Cheah Juw Teck.

The directors, shareholders and/or persons connected to Farsathy are as follows:
Chia Seong Pow, Chia Suan Hooi, Chia Seong Fatt, Chia Chong Lang, Sim Ahi Yok, Chia Chw Pew, Koh Kwee Choo, Chia Chew Seng, Chia Chiew Ngee, Chia Bak Lang and Chia Chew Fon.

3. Business Activities

(a) QL Agroventures Sdn. Bhd.

The principal business of QL Agroventures Sdn. Bhd. is layer farming.

(b) M.B. Agriculture (Sabah) Sdn. Bhd. ("MB (Sabah)")

The principal business of MB (Sabah) is engaged in livestock farming.

4. Rationale

The Related Party Transaction is to enable QL Agroventures to utilised the land to venture into broiler farming.

5. Financial Impact

There is no material effect on net profit, earnings per share, net assets, share capital and substantial shareholdings of the Company.

6. Approvals Required

No approval from the shareholders and authorities is required for the Related Party Transaction.

7. Interests of Directors, Substantial Shareholders and Persons Connected To Them

Save as disclosed in paragraph 2 above, none of the Directors have any indirect interests in the Related Party Transaction.

8. Statement by the Board of Directors

The Board of Directors is of the opinion that the Related Party Transaction is in the best interest of the Company.