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Further to the announcement on 23rd August 2010, the Board of Directors of QL Resources Berhad ("QL" of "Company")are please to provide the following additional information:-
1. QL has acquired the 11 million shares or 23.29% of Lay Hong Berhad ("Lay Hong")from London Biscuits Berhad ("Acquisition").
2. Basis in arriving at the price of RM1.05 per share was based on willing buyer willing seller taking into consideration the earning per share of Lay Hong as at 31.3.2010 of 22.33 cents, Price/Earnings of 4.7X and 52% of Net Tangible Asset of RM2.00.
3. Lay Hong is mainly involved in the production of eggs, broiler farming and feedmill activities. It has also ventured into the retail business in Sabah and currently operates eight supermarkets under the trade name G*MART.
4. The Acquisition was sourced from the Company's internal generated funds.
5. None of the directors and/or major shareholders and/or persons connected to them have any interest, direct or indirect in the Acquisition.
6. The highest percentage ratio applicable to the Acquisition pursuant to paragraph 10.02(g) of the LR was 2.30%.
7. The Acquisition of Lay Hong which are in similar businesses, will enable QL and Lay Hong to achieve synergies from feed raw material sourcing arrangements, supply chain networks and operations efficiency.
8. The Board of Director is of the opinion that the said Acquisition is in the the best interests of the Company. |
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