27 May 2014

OTHERS EXTENSION OF TIME FOR THE UTILISATION OF PROCEEDS

Author: admin | Filed under: Announcement

Type

Announcement

Subject

OTHERS

Description

EXTENSION OF TIME FOR THE UTILISATION OF PROCEEDS ARISING FROM THE PROPOSED DISPOSAL OF 275,000 ORDINARY SHARES OF RM1.00 EACH REPRESENTATING 55% EQUITY INTEREST IN DYNAMIC COMMUNICATION LINK SDN BHD (“DCL”) TO TOUCH MINDSCAPE SDN BHD

We refer to the announcements dated 1 December 2011, 15 February 2012 and 20 June 2012, 24 August 2012, 28 August 2012, 27 November 2012, 26 February 2013, 29 May 2013, 26 August 2013, 26 November 2013, 27 November 2013, 25 February 2014 in relation to, among others, the proposed disposal of 275,000 ordinary shares of RM1.00 each representing 55% equity interest in Dynamic Communication Link Sdn Bhd (”DCLSB”) to Touch Mindscape Sdn Bhd for a total cash consideration of RM15,000,000.

All abbreviations herein shall have the same meanings as those used in the abovementioned announcements unless stated otherwise.

The extension of time for the utilisation of the balance of the proceeds is not subject to shareholders’ or regulatory’ approvals and the Board of Directors of MESB is of the opinion that the extension of time for the utilisation of proceeds for future investment is necessary and for the best interest of the Company.

Accordingly, the Board of Directors of MESB wishes to announce that it had on 27 May 2014 resolved and approved a future extension of time of 24 months until 20 June 2016 for the utilisation of the balance of proceeds for future investment.

Purpose

Proposed

Utilisation

RM’000

Balance unutilised as at 30 April 2014

RM’000

Intended

Timeframe for utilisation

Proposed

Revised timeframe

(EXTENSION)

Note

Working capital requirements

4,700

–

Within 2 years from the receipt of the proceeds

–

(a)

Future investments

10,000

6,200*

Within 2 years from the receipt of the proceeds

2 years

(20 June 2016)

(b)

Expenses related to the disposal

300

(334)

Within 1 month from the receipt of the proceeds

–

(c)

15,000

5,866

Note:-

(a) The balance proceeds is expected to be fully utilized within the intended timeframe.

(b) After funding the shortfall of item (c), the balance of unutilised proceeds is placed with the short term deposit until such relevant investment has been identified.

(c) The shortfall of the expenses in item (c) was funded through item (b)


This announcement is dated 27th day of May 2014.

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