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JOINT VENTURE VIA SHAREHOLDERS' AGREEMENT IN RELATION TO KHIND HOME APPLIANCES SDN BHD

KHIND HOLDINGS BERHAD

Type

Announcement
SubjectJOINT VENTURE VIA SHAREHOLDERS' AGREEMENT IN RELATION TO KHIND HOME APPLIANCES SDN BHD

Contents :

The Board of Directors of Khind Holdings Berhad ("KHIND") would like to announce to Bursa Malaysia

Securities Berhad that KHIND had on 14 October 2005 entered into a Joint Venture via a Shareholders' Agreement
with Mr. Hsu Cheng-Wu ("HCW") in relation to their shareholdings in Khind Home Appliances Sdn Bhd
("KHA").

1.0 INTRODUCTION

      Presently KHA is a wholly-owned subsidiary of Khind Industries Sdn. Bhd ("KISB"), which in turn
      is a wholly-owned subsidiary of KHIND. KHA has a paid up share capital of RM2.00 which will be
      transferred by KISB to KHIND. Thereafter, KHA becomes a direct wholly-owned subsidiary of
      KHIND.
        HCW is a Taiwanese businessman with diverse business activities among others, include trading of
        consumer electrical appliances.

    2.0 DETAILS OF SHAREHOLDINGS IN KHA

    2.1 Shareholdings in KHA
        Presently KHA has a paid up share capital of RM2.00 which shall be increased to RM100,000.00 in the
        following proportions:-

        Shareholders No. of Shares Percentage of Shareholdings

        KHIND 50,000 50%

        HCW 50,000 50%

    2.2 Directorships in KHA
        The shareholders shall be entitled to nominate an equal number of directors to the board of directors
        of KHA. The Chairman of the Board shall be appointed by KHIND.


    3.0 RATIONALE FOR THE JOINT VENTURE WITH HCW VIA SHAREHOLDERS'
    AGREEMENT IN KHA
        The joint venture is part of KHIND's expansion plans into the South East Asian consumer electrical
        appliances markets particularly in Vietnam via HCW’s business associates.

        KHA will supply consumer electrical appliances under KHIND and Mistral brand names to HCW’s
        business associates in Vietnam.

    4.0 EFFECT OF THE JOINT VENTURE

    4.1 On Earnings Per Share (EPS)
        The joint venture will not have any material effect on the earnings of KHIND for the financial year ending
        December 31, 2005 but should contribute positively to future earnings of the KHIND Group.

    4.2 On Net Tangible Assets (NTA)
        The joint venture is not expected to have any immediate effect on the NTA of the KHIND Group of
        Companies.

    4.3 On Share Capital

        The investment via subscription to shares in KHA will be financed by internally generated funds and is not
        expected to have any material effect on the share capital of KHIND.

    4.4 Substantial Shareholders’ Shareholdings

        The investment will not have any effect on the substantial shareholders’ shareholdings.

    5.0 DIRECTORS’ AND SUBSTANTIAL SHAREHOLDERS’ INTERESTS

        Save for their interests as shareholders in KHIND, none of the directors and/substantial shareholders of
        KHIND and persons connected to them, have any interest, direct or indirect, in the joint venture.


    6.0 DIRECTORS' RECOMMENDATION ON THE PROPOSALS

        The Board of Directors of KHIND, after deliberation, is of the opinion that the joint venture with Mr. Hsu
        Cheng-Wu via KHA is in the best interests of the Company.
    This announcement is dated 14 October 2005.
    -


    Announcement Info

    Company NameKHIND HOLDINGS BERHAD  
    Stock Name KHIND    
    Date Announced14 Oct 2005  
    CategoryGeneral Announcement
    Reference NoKH-050927-35106



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