Contents :
We refer to the query from the Kuala Lumpur Stock Exchange dated 12th May 2003 (Ref: GK-030512-53328) on the above article published in The Edge Daily on 12th May 2003.
As announced by AMCORP on 12th May 2003, AMMB Holdings Berhad ("AHB"), a 34.33% associate company of AMCORP has obtained the approval from Bank Negara Malaysia on 10th May 2003 to commence negotiations with EON Capital Berhad on a possible merger between the two banking groups in line with recommendations of the Financial Sector Master Plan.
However, the discussions are still in the very preliminary stage and AMCORP will not be able to confirm any details, including as reported in the said article. The Company will make an announcement accordingly once the terms are finalised.
Tan Sri Dato' Azman Hashim, the Chairman of the AmBank Group has being in the banking industry since the 1960s. Tan Sri is key to the success of the AmBank Group and via AMCORP will remain instrumental to any new proposed merged entity.
Query Letter Contents :
We refer to the above news article appearing in The EDGE Daily, on Monday, 12
May 2003, a copy of which is enclosed for your reference.
In particular, we would like to draw your attention to the underlined
sentences, which is reproduced as follows:-
"...EON Capital will buy Arab-Malaysian Corp's (Amcorp) 32 per cent stake in
AMMB Holdings at between 1.8 and 2.0 times book value or about RM2 billion."
"The Eon Group will pay for the stake in AMMB Holdings with part sub-debts,
cash and issue of shares".
"...Amcorp will end up with a substantial amount of cash in excess of some
RM400 million, and also a 10 per cent stake in the enlarged issued capital of
the merged group".
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 sentences after due and diligent enquiry with all the directors,
major shareholders and all such other persons reasonably familiar with the
matters about which the disclosure is to be made in this respect. In the event
you deny the above sentences 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 sentences 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
CHONG FUI TZY
Senior Manager
Listing Operations
HTH/WSW/GK
c.c. Securities Commission (via fax)