DILUTION OF 5% EQUITY INTEREST IN NV CARE SDN BHD

NV MULTI CORPORATION BERHAD

TypeAnnouncement
SubjectDILUTION OF 5% EQUITY INTEREST IN NV CARE SDN BHD

Contents :

1.INTRODUCTION

    The Board of NV Multi Corporation Berhad (‘NVMC’) wishes to announce that NV Care Sdn Bhd (‘NVC’), a 61%-owned subsidiary company of NVMC , had on 28 December 2001 diluted its equity interest to 56% by way of transfer of 250,000 ordinary shares of RM1.00 each to Credence Image Sdn Bhd ("CI").
    The new change of shareholding structure of NVC following the dilution in equity interest in NVC are is as per attachment.

2. INFORMATION ON NVC
    NVC is principally involved in the provision of funeral packages.

    On 28 October 1998, NVMC and NVC entered into a Conditional Sale and Purchase Agreement with CI to acquire the entire issued and paid-up share capital of PJMC Sdn Bhd (‘PJMC’) (formerly known as PJ Modern Casket & Funeral Parlour Sdn Bhd) for a consideration of RM1,650,000 to be satisfied by cash amounting to RM900,000 and the remaining balance by 750,000 NVC shares representing 15% of the enlarged issued and paid-up share capital of NVC to be allotted equally over 3 years commencing 30 September 1999 subject to the fulfillment of a profit guarantee mentioned in next paragraph below. Clause 3(a)(ii) of the said agreement specified that the issued and paid-up capital of NVC should be increased to 5,000,000 ordinary shares of RM1.00 each.
    On 28 October 1998, NVMC and NVC and all the shareholders of CI entered into a Guarantee Agreement whereby the shareholders of CI guaranteed that the pre-tax profit of PJMC will not be less than RM600,000 per annum for the financial year ended 30 September 1999, financial year ended 31 December 2000 and financial year ending 31 December 2001 in connection with the Conditional Sale and Purchase Agreement referred above.
    PJMC’s pretax profit for the financial year ended 31 December 2000 amounted to RM1,434,506.00


3. FINANCIAL EFFECTS OF THE ALLOTMENT

    The shares allotment in NVC have no material impact on the earnings and net tangible assets of NVMC for the current financial year ending 31 December 2001.


4. APPROVALS REQUIRED
    No approval from any relevant authorities or shareholders of NVMC is required for the allotment.


5. DIRECTORS’ AND SUBSTANTIAL SHAREHOLDERS’ INTEREST
    None of the directors, substantial shareholders and persons connected with directors and substantial shareholders of NVMC has any interest, whether direct or indirect in the said allotment


This announcement is dated 28 December 2001.

ShareholderNo. of ordinary shares of RM1.00 each heldNo. of ordinary shares of RM1.00 each held
Before dilution
%
After dilution
%
NVMC
3,050,000
61
2,800,000
56
Lim Chee Hing
1,700,000
34
1,700,000
34
Credence Image Sdn Bhd
250,000
5
500,000
10
---------------
5,000,000
======
-------
100
===
----------------
5,000,000
======
-------
100
===


Announcement Info

Company NameNV MULTI CORPORATION BERHAD  
Stock Name NVMULTI    
Date Announced28 Dec 2001  
CategoryGeneral Announcement
Reference NoNM-011228-55103