OTHERS FLONIC HI-TEC BHD ("Flonic" or "the Company") - COMPLETION OF ACQUISITION OF AN OFFICE SUITE BY JIWA HOLDINGS SDN. BHD.
FLONIC HI-TEC BHD
FLONIC HI-TEC BHD ("Flonic" or "the Company")
- COMPLETION OF ACQUISITION OF AN OFFICE SUITE BY JIWA HOLDINGS SDN. BHD.
Reference is made to the Company’s submissions dated 8 February 2013 and 25 February 2013, wherein it was stated in Flonic’s Circular to Shareholders dated 8 February 2013 and Addendum to Circular to Shareholders dated 25 February 2013, respectively that “
an Option agreement dated 4 October 2012 was entered into between OSA (M) Sdn Bhd (“OSA”) and Jiwa Holdings Sdn. Bhd. (“Jiwa” or “JHSB”), where Jiwa was granted the right but not the obligation to purchase an office lot bearing an address of No. 10.1, Level 10, Menara One Mont Kiara, No.1, Jalan Kiara, 50480 Mont Kiara, Kuala Lumpur (“Office Suite”) during the period commencing 1 June 2012 and ending on 31 May 2014 (“Purchase Option Period”) at RM4.5 million (“Purchase Price”). The option agreement also provides that Jiwa shall pay to OSA an amount of RM28,000/- per month, during the Purchase Option Period the amount of which shall be applied towards the Purchase Price as earnest deposit. In the event the option to purchase is not exercised during the Purchase Option Period, OSA shall return 50% of the amount paid to it pursuant to the Option agreement
The Board of Directors of Flonic received notification today that Flonic's subsidiary, JHSB had on 29 April 2013 given written notice to OSA to exercise its rights and thereafter on 19 September 2013 completed the acquisition of the Office Suite valued at RM4.5 million via a term loan financing from RHB Bank Berhad of RM3.6 million. The said term loan is payable over 180 months at an annual interest rate of 2.1% above base lending rates.
The purpose of the above acquisition of Office Suite is to enable the Office Suite to serve as Corporate Office of JHSB as well as the Company.
This announcement is dated 25 September 2013.
FLONIC HI-TEC BHD
25 Sept 2013