Contents :
On behalf of CIH, we refer to your letter dated 7 January 2003 in respect of the statement "CI Holdings was supposed to secure [the franchise] ... but it was not acceptable to the franchisor," Johari says" in the above news article appearing in The Edge, pages 59 & 60, on Monday, 6 January 2003.
In relation to the above, CIH wishes to clarify that it had engaged in negotiations with the franchisor to secure the written consent of the franchisor, as required by the Securities Commission, for the acquisition of the entire equity interest in Mawar Seroja Sdn Bhd, which held the beneficial interest in 57 million ordinary shares of RM1.00 each in KFC Holdings (Malaysia) Berhad ("KFCH") and not to secure the franchise.
However, to date, the aforementioned written consent has yet to be granted. Pursuant to the proposed disposal by CIH of C.I. Enterprise Sdn Bhd (being the investment holding company for the 57 million shares in KFCH) as announced on 20 December 2002, CIH will cease negotiations with the franchisor in respect of obtaining the aforementioned written consent.
Query Letter Contents :
We refer to the above news article appearing in The Edge, pages 59 & 60, on
Monday, 6 January 2003, a copy of which is enclosed for your reference.
In particular, we would like to draw your attention to the underlined sentence,
which is reproduced as follows:-
1. " 'CI Holdings was supposed to secure [the franchise] ... but it was not
acceptable to the franchisor,' Johari says."
In accordance with the Exchange's Corporate Disclosure Policy, you are
requested to furnish the Exchange with an announcement for public release
confirming or denying the above reported article and in particular the
underlined sentence after due and diligent enquiry with all the directors,
major shareholders and all such other persons reasonably familiar with the
matter about which the disclosure is to be made in this respect. In the event
you deny the above sentence or any other part of the above reported article,
you are required to set forth facts sufficient to clarify any misleading
aspects of the same. In the event you confirm the above sentence or any other
part of the above reported article, you are required to set forth facts
sufficient to support the same.
Please furnish the Exchange with your reply within one (1) market day from the
date hereof.
Yours faithfully
LISA LAM
Senior Manager, Listing Operations
LL/ST/YYT/SW
c.c. Securities Commission (via fax)