Contents :The Board of Directors of NV Multi Corporation Berhad (‘NV Multi’) wishes to announce that Nirvana Memorial Park (Klang) Sdn Bhd (formerly known as Nirvana Landscape Sdn Bhd and formerly known as Nir-Warna Landscape Sdn Bhd) (210230-H)] ("NIRKLG"), a wholly-owned subsidiary of Nirvana Memorial Park Sdn Bhd [formerly known as Nir-Warna Sdn Bhd) (149924-V)] ("NIR"), which is the wholly-owned subsidiary of NV Multi, has on 15 August 2002 entered into a Joint Venture Agreement ("Joint Venture" or "the Agreement") with the Hokkien Association, Kelang ("HA" or "the Association"), to jointly develop the land held under H.S. (D) 24191 for P.T. No. 3283, Mukim Kapar, Daerah Klang, Selangor measuring approximately 68.2965 acres (‘the said Land") into a non-Muslim oriental cemetery complete with columbarium as well as other physical features and landscape with the intention to market such burial plots and cinerary urn niches to members of the Association and their immediate family and the general public.
1. SALIENT POINTS OF THE AGREEMENT
1.1 Information on HA
HA is a society registered under the provision of the Societies Act, 1966 and having its registered office at Bangunan Persatuan Hokkien, Kelang, Jalan Batu Tiga Lama, 41300 Klang, Selangor Darul Ehsan.
HA is the registered owner of the land comprised in P.T. No. 3283, Mukim Kapar, Daerah Klang, Selangor measuring approximately 68.2965 acres ("the said Land") and it desires to develop the said Land into a non-Muslim oriental cemetery complete with columbarium with the intention to market such burial plots and cinerary urn niches to members of the Association and their immediate family and the general public.
1.2. Information on NIRKLG
NIRKLG is a private limited company incorporated in Malaysia and is a wholly owned subsidiary of NIR which in turn is the wholly-owned subsidiary of NV Multi. NIRKLG is in the business of cemetery development and has the financial capability and expertise to design and build a scenic cemetery complete with burial plots and columbarium and landscape as well as marketing expertise to sell the burial plots and niches.
1.3 Details of the Joint Venture
1.3.2. Duties and responsibilities of NIRP
HA shall undertake to execute all plans, forms and documents for the application to the State Authority for the conversion of the said Land into non-Muslim burial ground at the sole cost and expense of NIRKLG.
The principal responsibility of NIRKLG is to develop on behalf of the Association the said Land into a viable cemetery and to market the burial plots and niches therein.
All costs and expenses with regard to the said development shall be borne solely by NIRKLG.
2. RATIONALE FOR THE JOINT VENTURE
The Joint Venture would enable NV Multi to enjoy a market share of the bereavement business in Klang.
3. EFFECTS OF THE JOINT VENTURE
1.3.3. Right to sell
NIRKLG shall have the sole right to market and offer for sale all the burial plots and niches comprised in the said Land.
The Joint Venture is not expected to have any material effect on the net tangible assets of the NV Multi Group for the current financial year ending 31 December 2002. However, the said Joint Venture is expected to enhance the earnings of NV Multi Group in the long terms.
4. DIRECTORS’ AND SUBTANTIAL SHAREHOLDERS’ INTEREST
None of the Directors of NV Multi, substantial shareholders and persons connected with Directors and substantial shareholders of NV Multi has any interest, whether direct or indirect, in the Joint Venture.
5. APPROVAL REQUIRED
The Joint Venture is not subject to the approval of the shareholders of NV Multi or relevant government authorities.
This announcement is dated 16 August 2002.