Contents :
We refer to the above-mentioned matter and wish to clarify as follows:-
1. Presently, Amanah Saham Pahang Berhad ("ASPA") is the controlling substantial shareholder of Mentiga Corporation Berhad ("Mentiga") holding 19,998,000 shares representing 50.63% of the issued and paid-up share capital of Mentiga. As at 24th July, 2000, the date of the publication of the Article entitled "Mentiga Under Pressure" in the Business section of the New Straits Times, the company had not received from ASPA any notice of change of shareholding in Mentiga.
2. Since ASPA is the controlling/substantial shareholder of Mentiga, any person or party interested to control Mentiga will have to acquire the controlling shares in Mentiga from ASPA.
3. The Company is not aware that some management staff of Mentiga have submitted Management Buy-Out ("MBO") proposal to the Pahang State Government as the company had not received any MBO proposal from the management staff. The company is also not aware if there have been negotiations/on going negotiations between the Pahang Government and the management staff proposing the MBO.
4. Since the company is not aware of the MBO proposal, the company is unable to comment to item 4 of your query.
5. The Company wish to announce that as at 30th June, 2000, it has defaulted in the repayment of principal sum of RM28,664,308.16 and interest of RM822,973.02 on its overdraft facility due to Perwira Affin Bank Berhad as a result of early recall of the facility by Perwira Affin Bank Berhad due to cash flow problems. Presently the plywood manufacturing operation had not been generating profit due to high cost of logs purchased from external parties. The oil palm plantation division also had been recording lower income due to lower yield achieved and low CPO price.
The Company is appealing to the Bank not to recall the overdraft facility and extend the repayment period to a further period of 24 months.
Query Letter Contents :
We refer to the above news article appearing in the New Straits Times, Business
Section, page 23 on Monday, 24 July 2000.
In particular, we would like to draw your attention to the following sentences
in the article, which are reproduced as follows:-
"A change in ownership, including a management buyout, is on the cards for
debt-laden Mentiga Corporation Bhd ... "
" ... new shareholders will have to buy the shares from Amanah Saham Pahang."
"Some management staff of the company are believed to have submitted the MBO
proposal to the Pahang Government. Negotiations between the two sides are
ongoing ... "
"It is believed that under the proposed MBO, the Pahang Government is being
asked to inject an asset - forest land in Lesong, Sungai Lembing in southern
Pahang, which will be cultivated with oil palm."
"Mentiga is currently said to be unable to service the interest - RM7.6 million
- on its loans."
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,
substantial 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
KUALA LUMPUR STOCK EXCHANGE
LISA LAM
Senior Manager, Listing Operations
LL/ASL/CY
c.c. Securities Commission