The Board of Directors of NV Multi Corporation Berhad ("NV Multi") wishes to announce that Nirvana Memorial Park Sdn. Bhd. (“NIR”), a wholly owned subsidiary of NV Multi, had on 18 June 2010 entered into a Share Sales Agreement (“SSA”) with Messrs Lee Hock Leong and Chan Mee Ling (“the Vendors”) to acquire 2 ordinary shares of RM1.00 each representing 100% equity interests in Spektrum Karisma Sdn Bhd ("SKSB”), for a cash consideration of RM20,000 (“the Acquisition”).
2. SALIENT FEATURES OF THE ACQUISITION
2.1 Information of NIR
NIR is a company incorporated in Malaysia with its principal activity of the development of non-Muslim private cemeteries. The authorised share capital of NIR is RM500,000 divided into 500,000 ordinary shares of RM1.00 each and its issued and paid-up share capital is RM350,000 divided into 350,000 ordinary shares of RM1.00 each.
2.2 Information of SKSB
a. SKSB is a company incorporated in Malaysia bearing company no. 892400-H with an authorized share capital of RM100,000-00 divided into 100,000 ordinary shares of RM1.00 each and having a paid-up share capital of RM2 divided into 2 ordinary shares of RM1.00 each.
b. SKSB is the beneficial owner of land held under Geran 49671 for Lot 1364 Mukim Ulu Semenyih Daerah Ulu Langat, Selangor (hereinafter referred to as “the said land”) measuring approximately 7.9 acres.
2.3 Basis of arriving at the consideration
The purchase consideration of RM20,000 is based on "willing-buyer-willing-seller" basis after taking into consideration the future earnings potential of SKSB.
2.4 Mode of payment
The purchase consideration shall be paid to the Vendors upon receipt of the valid registrable instrument of transfer of shares of SKSB.
2.5 Liabilities to be assumed
NIR undertake to assume liabilities in SKSB up to a limit of RM693,000 upon signing the SSA.
3. SOURCES OF FUNDS
The Acquisition will be funded by internally generated funds.
The Acquisition will allow the Group to enhance the overall development planning of Nirvana Memorial Park, Semenyih, due to the strategic location of the land.
5. EFFECTS OF THE ACQUISITION
The Acquisition is not expected to have any material impact on the share capital, net assets, gearing, substantial and major shareholders’ shareholding for the current year ending 31 December 2010 of NV Multi. However, the Acquisition is expected to contribute positively to future earnings of the Group.
6. APPROVALS REQUIRED
The Acquisition is not subject to the approval of the shareholders of NV Multi or any relevant statutory authorities.
7. INTEREST OF DIRECTORS, MAJOR SHAREHOLDERS AND PERSONS CONNECTED
None of the Directors, major shareholders of NV Multi and/or person connected with them has any interest, direct or indirect, in the Acquisition.
8. STATEMENT BY DIRECTORS
The Board of Directors of NV Multi, having considered all aspects of the Acquisition, is of the opinion that the Acquisition is in the best interest of the Group.
This announcement is dated 18 June 2010