PROPOSED ACQUISITION OF A PORTION OF THE LAND BEARING GERAN NO.8208, LOT 1850 IN THE MUKIM OF TEBRAU, DAERAH JOHOR BAHRU BY WHOLLY-OWNED SUBSIDIARY, UNICAN INDUSTRIES SDN. BHD.
Amended Announcements
Please refer to the earlier announcement reference number: PC-040430-36897
| JOHORE TIN BERHAD |
|
Type | Reply to query |
| Reply to Query Letter by KLSE reference ID | MN-040519-38257 |
| Subject | PROPOSED ACQUISITION OF A PORTION OF THE LAND BEARING GERAN NO.8208, LOT 1850 IN THE MUKIM OF TEBRAU, DAERAH JOHOR BAHRU BY WHOLLY-OWNED SUBSIDIARY, UNICAN INDUSTRIES SDN. BHD. |
Contents :
Johore Tin Berhad (JTB)'s Announcement made on 13 May, 2004 and Exchange's query letter dated 19 May, 2004 refers.
We append below the following additional information in respect of the subject matter for your attention.
1) TERM OF ANY ARRANGEMENT FOR PAYMENT:
a) RM258,419.70 paid by JTB by way of Deposit to guarantee the due performance and observance by JTB of the terms and conditions of the Conditional Agreement.
b) Set-off land for agreed price of RM2,696,391 as part payment and transfer documents to be effected within seven (7) days upon the presentation of the transfer of the Portion Land in favour of JTB at the relevant land office.
c) Cash balance of RM2,213,583.30 to be paid within seven (7) days from the presentation of the transfer of the portion land in favour of JTB at the relevant land office.
2) NET BOOK VALUE (NBV)OF THE PORTION LAND TO PINGAI'S LASTED AUDITED ACCOUNTS:
The NBV for portion land in Pingai's last audited accounts for year ended 31 Dec. 2002 is RM1,476.914
3) ORIGINAL COST OF INVESTMENT IN PORTION LAND TO PINGAI
Pingai purchased the Land on 24 Nov. 1991 at total original cost of RM2,756,906. The original Cost for the Portion land is RM1,476,914.
4) ESTIMATED TIME FRAME FOR COMPLETION OF PROPOSED ACQUISITION
Within 12 months
5) DEPARTURE FROM GUIDELINES:
To the best knowledge of the Board of Directors of JTB, the Proposed Acquisition has not departed from an of the SC's Policies and Guidelines on Issue/Offer of Securities.
6) TENURE OF LAND (IF LEASEHOLD) AND EXPIRY DATE
The land is a freehold agriculture land and approval had been received from relevant authority for its conversion from 'agriculture' to "industry" usage.
7) VALUATION ON PORTION LAND,
Name & Address of Independent Registed valuer:
Jones Lang Wootton (Proprietor: Singham Sulaiman Sdn. Bhd. of Unit No. 8.01, Level 8, Wisma LKN, No. 49, Jalan Wong Ah Fook, 80000 Johor Bahru. Johor.
Date of valuation:
26 April, 2004
Method of valuation:
The Basis of valuation is the 'Market Value' which is defined as "the estimated amount for which a property should exchange on the date of valuation between a willing buyer in an arm's-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion".
Quantification of the market value:
The Portion Land was valued as a parcel land assumed to be converted to Industrial use with all relevant conversion premiums and fees paid, measuring about 4.25 hectares (10.5 acres) under proposed sub-division plan and that an individual title conveying interest in perpetuity in respect of the portion land had been issued and free of all encumbrances and restrictive conditions.
Having regard to the foregoing and based on the assumptions stated above, the market value of the legal interest in the subject property forming part of Lot 1850, Mukim of Tebrau, District of Johore Bahru, Johor Darul Takzim having a land area of 4.25 hectares (10.5 acres), on the basis of vant possession and that an individual title conveying interest in perpetuity has been issued and free of all encumbrances and restrictive conditions, good, marketable and registrable is RM5,000,000 (Ringgit Malaysia: Five Million Only.)
8) PROPOSED USE OF PORTION LAND:
The proposed acquisition will facilitate Group's expansion plan.
9) INFORMATION OF SET-OFF LAND:
I) Consideration was arrived at 'willing-buyer willing-seller basis'.
ii) Net book value based on Unican's lastest audited accounts is RM3,719,795.71
iii) Expected loss arising from Transfer is around RM1,023,404.01. The land was acquired by Unican during the peak period around middle 1996.
iv) Original cost of investment to Unican and Date of Investment was RM3,814,549.20 and land was purchased on the 28 May, 1996.
v) Description of Set-off Land:
Freehold Land held under EMR 2676, Lot 246, in Mukim of Tebrau, Daerah Johor Bahru measuring 5.478 acres (Approval for conversion from "agriculture" to "Industrial" land had been received. The Land title had been surrendered to Land Office for endorsement to "Industrial land".
vi) Valuation carried out on land (if any):
No professional valuation was arranged for the purpose of the proposed acquisition. The consideration was determined from information of prevailing industrial land prices available in the market.
vii) Net Book Value based on lasted audited accounts for year ended 31 Dec. 2003 was RM3,719,795.71
viii) Encumbrances, if any:
Free from all encumbrances
THIS ANNOUNCEMENT IS DATED 21 MAY, 2004
Query Letter Contents :
We refer to your Company's announcement dated 13 May 2004, in respect of the
aforesaid matter.
In this connection, kindly furnish Bursa Malaysia with the following additional
information for public release:-
1) Terms of any arrangement for payment of the purchase consideration on a
deferred basis;
2) Net book value of the Portion Land, based on Pingai Sdn Bhd ("Pingai")'s
latest audited accounts;
3) The original cost of investment in the Portion Land to Pingai, and the date
of such investment;
4) Estimated time frame for the completion of the Proposed Acquisition;
5) A statement whether the Proposed Acquisition has departed from the
Securities Commission’s Policies and Guidelines on Issue/Offer of Securities;
6) The tenure of the Portion Land; if leasehold, the expiry date of the lease;
7) Whether any valuation was carried out on the Portion Land; if so, the name
of the independent registered valuer, date and method of valuation and
quantification of the market value;
8) The proposed use of the Portion Land; and
9) The following information on the set-off Land:-
(i) How the consideration was arrived at
(ii) Net book value based on Unican's latest audited accounts
(iii) The expected gain or loss to the Johore Tin Berhad group arising from the
transfer
(iv) Original cost of investment to Unican, and the date of such investment
(v) Information as per Appendix 10A, Part C of the Listing Requirements
Page 2/-
Please furnish Bursa Malaysia with your reply within two (2) market days from
the date hereof.
Yours faithfully
TAN YEW ENG
Sector Head
Issues & Listing
Group Regulations
TYE/LMN
copy to:- Securities Commission (via fax)
Announcement Info
| Company Name | JOHORE TIN BERHAD |
| Stock Name | JOHOTIN |
| Date Announced | 21 May 2004 |
| Category | General Announcement |
| Reference No | PC-040520-48917 |