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Related Party Transaction - QL Agroventures Sdn. Bhd. And M.B. Agriculture (Sabah) Sdn. Bhd. (Amended Announcement)

Type	:	Reply to query
Reply to Bursa Malaysia's Query Letter - Reference ID	:	RS-070801-56242
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.




Query Letter content :
We refer to your announcement dated 31 July 2007 in respect of the aforesaid
matter.
In this connection, kindly furnish Bursa Malaysia Securities Berhad with the
following additional information for public release:
1. Basis in arriving at the consideration.
2. The mode in which the consideration will be satisfied with, including terms
of any
arrangement for payment on a deferred basis. To ensure compliance with item
7 (a) or (b), Part A of Appendix 10A of the Listing Requirements ("LR"),
where applicable.
3. Particulars of all liabilities, including contingent liabilities and
guarantees to be
assumed arising from the RPT.
4. The original cost and date of investment to the vendor.
5. Salient features of the agreement in respect of the RPT and the time and
place
where it may be inspected.
6. Prospects and risks of the RPT.
7. Estimated timeframe for completion of the RPT.



8. Effect of the RPT to QL's gearing.
9. Additional information as prescribed by Part C, Appendix 10A of the LR.
10. A statement that the interested directors have abstained from stating an
opinion in
relation to the RPT.
Please furnish Bursa Securities with your reply within one (1) market day from
the date hereof.
Yours faithfully


INDERJIT SINGH
Head, Issuers
Listing Division
Group Regulation
IS/CKM/RSA


Copy to: Securities Commission (via fax) (Attention: Mr Chung Tin Fah)