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We refer to your letter dated 21 February 2000 on the above.
We wish to advise that the Company is presently negotiating with a third party for the long-term supply of logs to the Group. In addition, the Company is also negotiating with few parties for the acquisition of equity interest in several private limited companies. Appropriate announcements will be made in due course on the above matters should they be finalised.
Other than as disclosed above, we wish to advise that:-
i) The Company is not aware of any existing rumours or other conditions;
ii) The Company is not aware of any impending change in its major shareholders;
iii) There are no material developments in the Company's business and affairs which have not been previously disclosed; and
iv) The Company has no knowledge of any reason to account for the unusual market action.
Yours faithfully
for and on behalf of
TEKALA CORPORATION BERHAD
THIEN VUI HENG
Company Secretary