HUP SENG INDUSTRIES BERHAD - RECURRENT RELATED PARTY TRANSACTION ("RRPT")
|HUP SENG INDUSTRIES BERHAD|
|Subject||HUP SENG INDUSTRIES BERHAD|
- RECURRENT RELATED PARTY TRANSACTION ("RRPT")
Contents :Pursuant to Paragraph 2.0 of the Practice Note 12/2001, the Board of Directors of Hup Seng Industries Berhad ("HSIB") wishes to announce that in the course of the Group’s operations, its wholly owned subsidiary, In-Comix Food Industries Sdn. Bhd. ("In-Comix") shall enter into recurrent related party transaction of revenue or trading nature ("Transaction") which are necessary for the Group’s day-to-day operations with Tomypak Holdings Berhad ("Tomypak"), a supplier of packing materials at an estimated value of RM600,000.00 (Ringgit Malaysia Six Hundred Thousand Only) from March 2007 to forthcoming Annual General Meeting to be held on May 2007.
The transactions entered into are in the ordinary course of business, made at arm’s length, on normal commercial terms and on terms not more favorable to the related party than those generally available to the public and are not to the detriment of the minority shareholders.
As the estimated value of the Transaction falls within the ambit of the Paragraph 2.1(a) of the Practice Note 12/2001, that is,
a) the consideration, value of the assets, capital outlay or costs of the Transactions is equal to or exceeds RM1 million; or
b) the percentage ratio of such Transaction is equal to or exceeds 1%,
whichever is the higher,
thus, the Company is required to make an immediate announcement instead of obtaining shareholders' mandate for such Transaction.
INFORMATION ON TOMYPAK
Tomypak (Company No. 337743-W), a company incorporated in Malaysia on 28 March 1995 with its relevant information as follow: -
i) Authorised capital of RM50,000,000 comprising of 50,000,000 ordinary shares of RM1.00 each.
ii) Paid-up capital is RM40,000,000 comprising of 40,000,000 ordinary shares of R1.00 each.
iii) Its principal activities relate to the manufacture and sale of packaging materials, polyethylene, polypropylene films and sheets and thermoforming sheets.
RATIONALE OF RRPT
The rationale for In-Comix to enter into such RRPT is to sustain business effectiveness by having competitive prices, reliability in the supply of materials and goods as well as efficient delivery time. As such, it would enhance cost effectiveness and improve returns on shareholders' values.
EFFECTS OF RRPT
(a) Share capital
The RRPT is not expected to have any effect on the issued and paid up capital share capital of HSIB Group.
The RRPT is not expected to have any effect on the Earnings and Net Assets for HSIB Group.
DIRECTORS AND MAJOR SHAREHOLDERS' INTEREST
Save as disclosed below, none of the Directors and substantial shareholders of HSIB or any persons connected with them have any interest, direct or indirect, in the such Transaction: -
(1) A Director of In-Comix, namely Mr Lim Hun Swee is a major shareholder of Tomypak and shareholder of HSIB.
STATEMENT BY THE DIRECTORS
The Board, after careful deliberation, is of the opinion that the Transaction is in the best interest of HSIB Group.
This RRPT does not need any authorities' and shareholders' approval.
|Company Name||HUP SENG INDUSTRIES BERHAD|
|Date Announced||15 Mar 2007|