Highlights:
add free Download App
premium Premium Account

Last Price Change Volume
Open: Day Range: Prev Close:


GRAND-FLO SOLUTION BERHAD (“GRAND-FLO” OR “COMPANY”) ACQUISITION OF THREE STOREY SHOPOFFICES (“THE ACQUISITION”)

GRAND-FLO SOLUTION BERHAD

Type

Announcement
SubjectGRAND-FLO SOLUTION BERHAD (“GRAND-FLO” OR “COMPANY”)
ACQUISITION OF THREE STOREY SHOPOFFICES (“THE ACQUISITION”)

Contents :

1. INTRODUCTION

      The Board of Directors of Grand-Flo (“Board”) is pleased to announce that Grand-Flo Electronic System Sdn Bhd, a wholly-owned subsidiary of Grand-Flo had on 17 November 2005 entered into a Sales & Purchase Agreement (“SPA”) with Bayan Bay Development Sdn. Bhd. and CP Landmark Sdn. Bhd. in respect of the Acquisition of a new property of three storey shopoffices for a total consideration of RM937,612.


2. DETAILS OF THE ACQUISITION
      The properties acquired are located at Multimedia Super Corridor Cybercity, Penang measuring 3,908 square feet in area. The properties are currently under development and scheduled to be completed in two (2) years from the date of the SPA.


3. BASIS OF PURCHASE CONSIDERATION
      The purchase consideration of RM937,612 for the acquisition was arrived at on a “willing-buyer willing seller” basis in line with the current market price. The purchase consideration will be financed by borrowings and/or internally-generated funds.

No liabilities will be assumed by the Company arising from the Acquisition.

4. APPROVAL REQUIRED
      The Acquisition does not require the approval of the shareholders of Grand-Flo or any relevant authorities.


5. RATIONALE

      The Acquisition will enable Grand-Flo to house its Northern branch office as well as the Research and Development Centre in a recognised Cybercity, in accordance with the requirement for a MSC-status company.
6. FINANCIAL EFFECTS OF THE ACQUISITION

      The effects of the Acquisition on the share capital, net tangible asset (“NTA”), earnings and substantial shareholders’ shareholdings of Grand-Flo are as follows:-

      6.1 Share Capital
          The Acquisition will not have any effects on the share capital of Grand-Flo as the purchase consideration will be satisfied entirely by cash.
6.2 NTA
          The Acquisition will not have any material effects on the NTA of Grand-Flo as Grand-Flo is proposing to acquire a property at current market price.
6.3 Earnings
          Barring any unforeseen circumstances, the Board is of the opinion that the Acquisition is not expected to have any material effects on the earnings of Grand-Flo for the financial year ending 31 December 2005.
6.4 Substantial shareholders’ shareholdings
          The Acquisition will not have any effects on the substantial shareholders’ shareholdings in Grand-Flo as the purchase consideration will be satisfied entirely by cash.
7. ESTIMATED TIME FRAME FOR COMPLETION
      Barring any unforeseen circumstances, the Acquisition is expected to be completed within two (2) years from the date of this announcement.

    8. DIRECTORS’ AND SUBSTANTIAL SHAREHOLDERS’ INTEREST

        None of the Directors, substantial shareholders and persons connected to the Directors or substantial shareholders of Grand-Flo have any interest, direct or indirect in the Acquisition.


    9. DIRECTORS’ RECOMMENDATION
        The Board, after careful deliberation, is of opinion that the Acquisition is in the best interest of the Company.
    10. DOCUMENTS AVAILABLE FOR INSPECTION

        Copy of the SPA is available for inspection at the registered office of Grand-Flo at 3rd Floor No.79 (Room A), Jalan SS21/60, Damansara Utama, 47400 Petaling Jaya, Selangor during normal office hours from Monday to Friday (except public holiday) for a period of two (2) weeks commencing from the date of this announcement.

        This announcement is dated 17 November 2005.


    Announcement Info

    Company NameGRAND-FLO SOLUTION BERHAD (MESDAQ Market) 
    Stock Name GRANFLO    
    Date Announced17 Nov 2005  
    CategoryGeneral Announcement
    Reference NoCM-051024-61169



    Close