Director Related Party Transactions of a Recurrent Nature

HUP SENG INDUSTRIES BERHAD

TypeAnnouncement
SubjectDirector Related Party Transactions of a Recurrent Nature

Contents :

Pursuant to Practice Note No. 12/2001 issued in relation to paragraph 10.08 and 10.09 of the Listing Requirements of Kuala Lumpur Stock Exchange, we wish to inform the Exchange of the following related party transactions of a revenue or trading nature which are necessary for the day to day operations of Hup Seng Industries Berhad (HUPSENG) or its subsidiaries (HUPSENG Group):


Please refer to the table attached below.

DIRECTORS AND MAJOR SHAREHOLDERS’ INTERESTS

The following person are the Directors and/or Substantial Shareholders of HUPSENG by virtue of Section 6A of the Companies Act, 1965 through HSB Group Sdn. Bhd.

1. Kuo Choo Song,
2. Ke (Kek) Kim Soon @ Kerk Choo Soon,
3. Keh (Kerk) Chu Koh,
4. Kerk Chiew Siong,
5. Teo Lee Teck, and
6. Kuo Liong Yok

Save as disclosed above, none of the other Directors or substantial shareholders of HUPSENG and its subsidiaries or persons connected to them has any interest, direct or indirect, in the said transactions.

The Company will seek general mandate from the shareholders in due course.

The interested directors will abstain from deliberating and voting on the relevant resolution at the board meeting and at the general meeting to seek shareholders’ mandate. The major shareholders and person connected with them shall also abstain from voting at the general meeting to seek shareholders’ mandate.


RATIONALE

The HUPSENG Group is principally involved in the manufacturing and marketing of biscuits business. Both HSBH and TBI are investment holding companies.

HSBH is a shareholder of HSB Group Sdn. Bhd. and HSB Group Sdn. Bhd. is the major shareholder of HUPSENG. HSHY and HSPM are the wholly owned subsidiaries of HUPSENG. The transactions between HSHY, HSPM, HSBH and TBI respectively are undertaken on an arm’s length basis, on normal commercial terms and on terms not more favourable to the related party than those generally available to the public and not prejudicial to the minority shareholders. Such transactions are expected to occur on a frequent and recurrent basis.


FINANCIAL EFFECTS OF THE TRANSACTIONS

The transactions are not expected to have any material effect on the earnings per share or net tangible assets of the HUPSENG Group for the financial year ended 31 December 2001.


STATEMENT BY THE BOARD OF DIRECTORS

The Board of Directors, is of the opinion, that the above transactions are in the best interests of HUPSENG Group.

Related party
Nature of transaction
Estimated
Amount
Interested parties
Hup Seng Brothers Holding Sdn. Bhd. (HSBH)1. Rental of factory lots at 218, 124, 125, Jalan Bukit Pasir, 83050 Batu Pahat, Johor for storing of agent products by Hup Seng Hoon Yong Brothers Sdn. Bhd. (HSHY)

2. PROPOSED rental of 3 (three) factory lots at 127, 129 and 131, Jalan Taming 6, Taman Taming Jaya, 43300 Balakong, Selangor for warehousing and office purposes by Hup Seng Hoon Yong Brothers Sdn. Bhd. (HSHY)

3. Rental of factory at 219, 121, 122, 123, Jalan Bukit Pasir, 83050 Batu Pahat, Johor for storing of obsolete machineries and parts by Hup Seng Perusahaan Makanan (M) Sdn. Bhd. (HSPM)

1. RM24,000 per year



2. RM64,800 per year







3. RM30,000 per year

HSHY is related to HSBH through common directors viz. Kuo Choo Song, Ke (Kek) Kim Soon @ Kerk Choo Soon, Keh (Kerk) Chu Koh, Kerk Chiew Siong and Kuo Liong Yok. They are also the substantial shareholders of HSBH.






HSPM is related to HSBH through common directors, viz. Kuo Choo Song, Ke (Kek) Kim Soon @ Kerk Choo Soon, Keh (Kerk) Chu Koh, Kerk Chiew Siong, Kuo Liong Yok and Teo Lee. Teck They are also the substantial shareholders of HSBH.

Related party
Nature of transaction
Estimated
Amount
Interested parties
Tiong Bee Industries Sdn. Bhd. (TBI)Rental of factory lot at 1A Jalan Kapal, Kawasan Perindustrian Tongkang Pecah, 83010 Batu Pahat, Johor for production and warehousing purposes by Hup Seng Perusahaan Makanan (M) Sdn. Bhd. (HSPM)RM48,000 per yearHSPM is related to TBI through common directors, viz. Kuo Choo Song , Ke (Kek) Kim Soon @ Kerk Choo Soon, Keh (Kerk) Chu Koh. They are also the substantial shareholders of TBI.



Announcement Info

Company NameHUP SENG INDUSTRIES BERHAD  
Stock Name HUPSENG    
Date Announced30 Nov 2001  
CategoryGeneral Announcement
Reference NoHS-011130-BA86A