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1.0 INTRODUCTION
The Board of Directors of QL Resources Berhad ("QL") wishes to announce that Tay Ninh People's Committee of the Socialist Republic of Vietnam had on 7 May 2008 issued an Investment Certificate, which was received by QL's wholly-owned subsidiary, QL Feedingstuffs Sdn. Bhd. ("QLF") on 12 May 2008, for the incorporation by QLF of a new wholly-owned subsidiary known as QL Vietnam AgroResources Liability Limited Company ("QLVA"), in Vietnam.
2.0 DETAILS OF THE NEW SUBSIDIARY
The paid-up capital or charter capital of QLVA is USD4,000,000 and its principal activity is producing breeder and chicken eggs.
The investment in QLVA by QLF will be financed via internally generated funds and borrowings.
QLVA has an approved term of operations in Vietnam for 50 years commencing from the date of issuance of the Investment Certificate.
The incorporation of QLVA is in line with the QL Group's strategy to expand its integrated livestock farming division overseas.
3.0 FINANCIAL EFFECTS OF THE INCORPORATION OF NEW SUBSIDIARY
The incorporation of the QLVA shall not have any effect on the issued and paid-up capital of QL and no material effect on net tangible assets, gearing and earnings of the Group for the financial year ending 31 March 2009. However, barring any unforeseen circumstances, it is expected to have a positive impact on the consolidated earnings of QL Group in the future.
4.0 APPROVALS REQUIRED
The incorporation of new subsidiary is not subject to any approvals from regulatory bodies or the shareholders of QL.
5.0 DIRECTORS AND SUBSTANTIAL SHAREHOLDERS' INTEREST
None of the Directors or Substantial Shareholders of QL, or persons connected to such Directors or Substantial Shareholders has any interest, direct or indirect, in the above transaction.
6.0 STATEMENT BY THE BOARD OF DIRECTORS
The Directors of QL is of the opinion that the incorporation of new subsidiary is in the best interest of the Company.
This announcement is dated 12th May 2008.
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