AGREEMENT entered by wholly-owned subsidiary


SubjectAGREEMENT entered by wholly-owned subsidiary

Contents :

      The Board of Xian Leng Holdings Berhad ("XLHB") is pleased to announce the following :-

1. Introduction
      On 18 November 2002, Xian Leng Aquatic (Shah Alam) Sdn. Bhd. ("XLASB"), a wholly-owned subsidiary of XLHB has entered into an Agreement with Mercu Jutaan Sdn. Bhd. ("MJSB"), one of the Companies within the World Equipment Group engaging in the leisure and recreational industry and amongst its business activities, operates water-based theme parks under the"Wet World" brand name.

2. Details of the Agreement

a) MJSB is the owner and operator of the "Wet World" water park located at Shah Alam referred as "Shah Alam Water Park".
b) The Land in respect of which the Shah Alam Water Park is situated is currently being leased to MJSB.
c) XLASB’s principal business is that of supplier and operator of aquariums and sale of fishes.
d) MJSB agrees to grant to XLASB upon the terms and subject to the conditions of the Agreement as well as to the Park Rules and Regulations,an exclusive right to use the site allocated for sole purpose of setting up and operating an aquarium trading centre at Shah Alam Water Park.

3. Salient Terms of the Agreement

a) XLASB agrees and undertakes to pay to MJSB a yearly consideration which shall be equal to fifteen percent (15%) of the net profit before tax and management fee derived and resulting from the operations of the Aquarium trading centre of XLASB for the year concerned or a proportionate amount thereof for any period shorter than one (1) year Provided Always that the aforesaid consideration payable for each year shall not be less than Ringgit Malaysia Forty Thousand (RM40,000).

b) XLASB agrees not to commence business operations at the site until and unless it has obtained all approvals, licence,permits and consents as may be required from the appropriate authorities and under or pursuant to any law, legislation, regulation or directive for the time being in force for and in connection with the setting up and operation of the Aquarium trading centre.

4. Financial Effect
      The transaction will not have any material effect on the earnings, share capital and net tangible assets of XLHB for the financial year ending 31 January 2003. However, barring any unforseen circumstances, the Board is of the view that the transaction would have a positive impact on the earnings of XLHB Group in future years.

      The total investment outlay for the above transaction is estimated to be in the region of Ringgit Malaysia Five (5) million and will be financed from the Group’s internally generated funds.

5. Directors’ and Substantial Shareholders’ interest
      Mr. Chua Bah Bee @ Chua Chong Seng and Ms. Lim Wan Hong are directors and major shareholders of XLHB and they are also directors of XLASB. Mr. Tan Cheng Kiat is a director of both XLHB and XLASB.

6. Statement by the Board of Directors
      The Board, after careful deliberation, is of the opinion that the above transaction is in the best interest of the XLHB Group.
      This Announcement is dated 18 November, 2002.

Announcement Info

Stock Name XIANLNG    
Date Announced18 Nov 2002  
CategoryGeneral Announcement
Reference NoPC-020919-54119