News & Announcements

04 December 2009
Reply to Bursa Query

ACQUISITION OF A COLD BRIQUETTE IRON PLANT(“THE PLANT”) BY PERWAJA STEEL SDN BHD (“PSSB”) A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY, FROM SAITO STEEL MILL ENGINEERING SDN BHD (“THE VENDOR”), A WHOLLY-OWNED SUBSIDIARY OF MAJU HOLDINGS SDN BHD, FOR A TOTAL CASH CONSIDERATION OF RM6,839,335.93 ONLY (“THE CONSIDERATION”)(“THE ACQUISITION”)

Further to the Company’s announcement on 01 December 2009, the Board of Directors of PHB wishes to announce the following additional information on the Acquisition:

1. Justification for the Consideration
   
   The justification for the Consideration, which was derived at on a willing buyer-willing seller basis, includes the following:
   
   
   1. net book value of the Plant of RM2,123,857.
      
      
   2. ease of technology transfer by the Vendor to PSSB in terms of know-how in operation, blending of right chemical additives with corn starch and metal mould segment maintenance. This is made possible as the Plant has been supporting the operations of PSSB’s DR Plant since its inception.
      
      
   3. Further, the time and cost required in building a new plant of similar features represents an operational risk to PSSB whereas minimal gestation period for PSSB by acquiring the Plant. The Plant is expected to contribute towards improved operation and efficiency of the DR Plant.

This announcement is dated 04 December 2009.