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GRAND-FLO SOLUTION BERHAD (“GRAND-FLO” OR “COMPANY”) ACQUISITION OF THE REMAINING 49% EQUITY INTEREST IN GRAND-FLO SYSTEMS (S) PTE. LTD. FOR A NOMINAL CONSIDERATION OF SGD 1.00 (“ACQUISITION”)

GRAND-FLO SOLUTION BERHAD

Type

Announcement
SubjectGRAND-FLO SOLUTION BERHAD (“GRAND-FLO” OR
“COMPANY”)

ACQUISITION OF THE REMAINING 49% EQUITY INTEREST IN GRAND-FLO SYSTEMS (S) PTE. LTD. FOR A NOMINAL CONSIDERATION OF SGD 1.00 (“ACQUISITION”)

Contents :



1. Introduction
      The Board of Directors of Grand-Flo Solution Berhad (“Board”) is pleased to announce that the Company has on 17 May 2006 entered into an agreement with Innotech Resources Pte Ltd (“Innotech” or “Vendor”) for the acquisition of the remaining equity of 49% in Grand-Flo Sytems (S) Pte. Ltd. (“GF Systems).

With the Acquisition, GF Systems has become a wholly-owned subsidiary of Grand-Flo.


2. Details of the Acquisition
      The Acquisition entails the acquisition of 24,500 ordinary shares of SGD1.00 each representing 49% equity interest in GF Systems for a nominal consideration of SGD1.00 satisfied by cash. The acquisition consideration was arrived at on a willing-buyer willing-seller basis after taking into consideration the latest available audited net tangible liabilities of GF Systems of SGD7,396 as at 31 December 2005.


3. Information on GF Systems
      GF Systems was incorporated in Singapore as a private limited company on 11 March 2004. Its current issued and paid-up capital is SGD50,000 comprising of 50,000 ordinary shares of SGD1.00 each. GF Systems is principally involved in the hardware and software consultancy business in Enterprise Data Collection and Collation Systems.


4. Information on the vendor
      Innotech is a private limited company incorporated in Singapore. Its current issued and paid-up capital is SGD 50,000 comprising of 50,000 ordinary shares of SGD1.00 each. Innotech is principally involved in the business of maintenance and repair of computer hardware, data processing equipments, and packaging activities. The existing directors and substantial shareholders of Innotech are Alex Choong Poh Teck and Chng Siang Beng.

5. Financial Effects of the Acquisition
      The Acquisition does not have any effect on the issued and paid-up share capital and substantial shareholders’ shareholdings in Grand-Flo as the consideration is satisfied entirely by cash. In addition, the acquisition will not have any material effect on the earnings and net assets of Grand-Flo and its subsidiaries (“Grand-Flo Group”) for the financial year ending 31 December 2006.


6. Rationale for the Acquisition
      The Acquisition is part of the Grand-Flo Group’s rationalisation effort to consolidate its activities within the Group.


7. Approvals Required
      The Acquisition is not subject to any approval from the shareholders of Grand-Flo or other authorities.


8. Directors’ and major shareholders’ interests
      None of the Directors and/or substantial shareholders of Grand-Flo and/or persons connected with any of them have any interest, direct or indirect in the Acquisition.

9. Directors’ RECOMMENDATION
      After having considered the rationale for the Acquisition, the Board is of the opinion that the Acquisition is in the long term interest of the Company and its shareholders.


10. SPONSOR

Kenanga is currently the sponsor of the Company.


11. ESTIMATED TIME FRAME FOR COMPLETION

The Acquisition is completed on the date of the agreement dated 17 May 2006.


This announcement is dated 17 May 2006.


Announcement Info

Company NameGRAND-FLO SOLUTION BERHAD (MESDAQ Market) 
Stock Name GRANFLO    
Date Announced17 May 2006  
CategoryGeneral Announcement
Reference NoCM-060517-52775



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