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1.0 INTRODUCTION
The Board of Directors of QL Resources Berhad ("QL") wishes to announce that QL's wholly-owned subsidiary, QL Fishmeal Sdn. Bhd. ("QLF") have on 13 November 2008, received approval from the Ministry of Justice and Human Rights the incorporation of a wholly-owned subsidiary known as PT. QL Hasil Laut ("QLHL"), in Indonesia.
2.0 DETAILS OF THE NEW SUBSIDIARY
The authorized capital and the paid-up capital of QLHL is USD2 million and USD2 million respectively. Its principal activity is processing of seafood.
The investment in QLHL by QLF will be financed via internally generated funds and borrowings.
The incorporation of QLHL is in line with the QL Group's strategy to expand its marine product division overseas.
3.0 FINANCIAL EFFECTS OF THE INCORPORATION OF NEW SUBSIDIARY
The incorporation of the QLHL 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 14th November 2008. |
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