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 :

Further to the announcement on 31 July 2007 with regards to the wholly owned subsidiary, QL Agroventures Sdn. Bhd. entered into a related party transaction with M.B. Agriculture (Sabah) Sdn. Bhd. to take over its sublease of a native land from Mr Lungkis Bin Bariga for a total consideration of RM1,146,590.50, enclosed are the additional information for public release:-

Basis of arriving at the consideration

The consideration was arrived based on the market value of the leasehold land using the comparative method of valuation provided by JS Valuers Property Consultants (E.M.) Sdn. Bhd. dated 27 July 2006 at RM1,057,000.00 and taking into account the cost of fencing work and infrastructure work.

Sources of Funds in relation to the takeover of the sublease

The consideration will be funded by internally generated funds.

Liability to be Assumed by the Company

The sublease will be taken over from M.B. Agriculture (Sabah) Sdn. Bhd. free from encumbrances. There is no liability to be assumed by the Company.

Original Cost of Investment

The Lands were originally subleased by M.B. Agriculture (Sabah) Sdn. Bhd from Mr Lungkis Bin Bariga at a total consideration of RM907,307.

Salient features of the takeover

No agreement has been established for the take over of sublease except that there will be a Memorandum of Transfer of Sublease.

Prospects and risks of the taking over the sublease

The sublease of land will enable QL Group to expand further its broiler operations. The risk involved is minimum unless the government impose new regulations on sublease.

Estimated timeframe for completion

Barring any unforeseen circumstances, the takeover is expected to be completed within a month time.

Effect of the related party to QL's gearing

The transaction will not have a material effect on the Company's gearing for the financial year ending 31 March 2008.

Description of the land sublease

The subject lands, which are vacant leasehold native land approved for livestock farming, with a sublease tenure of 30 years. The total land area are 31.13 acres. The land is completed with fencing, farm road and earth work.

Statement by Interested Directors

The interested directors have abstained from stating an opinion in relation to the related party transaction.