OTHERS HANDAL RESOURCES BERHAD ("HANDAL" OR "THE COMPANY") - SUBSCRIPTION OF SHARES IN TK PRECISION SOLUTION SDN. BHD. BY HANDAL OFFSHORE SERVICES SDN. BHD.

HANDAL RESOURCES BERHAD

Type Announcement
Subject OTHERS
Description
HANDAL RESOURCES BERHAD ("HANDAL" OR "THE COMPANY")
- SUBSCRIPTION OF SHARES IN TK PRECISION SOLUTION SDN. BHD. BY HANDAL OFFSHORE SERVICES SDN. BHD.

The Board of Directors of HANDAL wishes to announce that its wholly-owned subsidiary, Handal Offshore Services Sdn. Bhd. (“HOSSB”), had on 14 March 2019 subscribed for 70,000 new ordinary shares in TK Precision Solution Sdn. Bhd. (“TPSSB”) for a total cash consideration of RM70,000.00 only (“Subscription”). The Subscription was funded via internally generated funds.

 

TPSSB is a private limited liability company incorporated in Malaysia with an initial paid up share capital of RM1.00. TPSSB is principally engaged in the production of machinery components, providing engineering services & repairs and general workshop practice.

 

Pursuant to the Subscription and the concurrent subscription of an additional 29,999 ordinary shares by Mr Lim Heng Peow, the total issued share capital of TPSSB has increased from 1 ordinary share to 100,000 ordinary shares as follows:

 

Name of Shareholders

No. of Shares held

%

HOSSB

70,000

70

Mr Lim Heng Peow

30,000

30

Total

100,000

100

 

As a result of this Subscription, the total equity held by HOSSB in TPSSB is 70,000 ordinary shares, resulting in it becoming a 70% subsidiary of HOSSB.

 

The Subscription will enable HANDAL Group to establish its own machining division to support its current offshore pedestal crane related business activities, specifically for the fabrication of new offshore cranes. In addition, HANDAL Group would now have the necessary expertise and capabilities to expand to other areas of machining and precision engineering for application in the oil and gas industry, such as emergency clamps and water injection systems.

 

The Subscription is not expected to pose any additional risks to the HANDAL Group other than operational risks associated to the business of TPSSB.

 

There are no liabilities to be assumed by HANDAL arising from the Subscription.

 

The Subscription is not expected to have any material effects on the earnings or net assets of the Company for the 18-month financial period ending 30 June 2019.

 

The Subscription is not subject to approval of the shareholders of the Company or other relevant authorities.

 

None of the directors and/or major shareholders of the Company and/or persons connected with them have any interest, direct or indirect, in the Subscription.

 

The Board of Directors of HANDAL, after taking into consideration of all financial and other factors, is of the opinion that the Subscription is in the best interest of the Company.

 

This announcement is dated 14 March 2019.






Announcement Info

Company Name HANDAL RESOURCES BERHAD
Stock Name HANDAL
Date Announced 14 Mar 2019
Category General Announcement for PLC
Reference Number GA1-14032019-00046