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If got div, not back loh.
des_khor ( Date: 20-Feb-2009 11:39) Posted:
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U mean 400,000 shares ??
Most of the Plantation Land has been cultivated with poplar trees and which will be mature for harvest in four to six months from the date of completion of the Acquisition. Transportation infrastructure (including railway, national highway and roads) in the Plantation Land allows the harvested timber to be transported efficiently for distribution. The PRC Company has a well-established network in marketing, sale and distribution of the harvested timber and its byproducts.
PRC Company is principally engaged in the business of plantation, research and development on plantation related technologies, manufacture, sale and distribution of plantation products, including products from Populus tremula (commonly known as poplar tree) and Ricinus communis L. (commonly known as castor plant). Poplar tree provides the raw material for wood industry and wood pulp for paper making industry. Castor seed oil is the internationally traded raw material for making aviation engines lubricant, paintings and coatings, cosmetics, pharmacy and substitutes to oil derivative products.
PRC Company plans for 30 years sustainable plantation to cater for the increasing and high demand from wood industry, paper making industry and industrial raw materials.
Any idea what type of plantation? If it is planted with oil palm, corn, rubber and soya bean, a mixture of crops, I would support. If the plantation is very big and free hold, I long.
THE ANNOUNCEMENT IS OUT (can get full announcement at sgx website). Apparently the company is not being acquired but instead acquring some other companies : in this case AMPLE RICH, a company in the plantation business.
VERY SUBSTANTIAL ACQUISITION
The Board is pleased to announce that on 24 June 2008, the Company and the Vendor entered into
the Acquisition Agreement, pursuant to which the Company has agreed to acquire from the Vendor
the Sale Share (representing the entire issued share capital of Ample Rich) and the Loan at a total
consideration of HK$500,000,000.00. Upon completion of the Acquisition, Ample Rich will become
a wholly-owned subsidiary of the Company, and the Company will, through Ample Rich and its
wholly-owned subsidiary Gold Vantage, own the entire equity interests in PRC Company, a whollyforeign
owned enterprise principally engaged in the business of plantation, research and development
on plantation related technologies, manufacture, sale and distribution of plantation products.
Here's the cited reasons for the acquisition:
Reasons for the Acquisition The Group is principally engaged in design, manufacture and sale of quality men’s and ladies’ wear.
In order to complement with the highly competitive apparel market, the Directors consider that the
diversification of business into new areas of high-growth potential will be in the best interests of the
Shareholders. The Company takes initiative in identifying business opportunities in new emerging
industries that will broaden its revenue sources.
According to the Annual Review and Assessment of the World Timber Situation 2007 by the International
Tropical Timber Organization, the real gross domestic product in the emerging market and developing
economies reached approximately 7.8% in 2007 (with the PRC’s real gross domestic product growth
of approximately 11 .4% in 2007), which has outgrown that of the advanced economies of 2.6%. The
demand for housing and thus wood materials in the PRC is expected to grow in the long run in view
of the economic expansion in the PRC. The forestry industry and the selling prices are expected to be
on an upward trend due to their scarcity and the increasing demand, particularly when PRC is now the
world’s number one importer of industrial wood logs. In light of the above, the Directors believe the
Acquisition represent a good opportunity for the Company to enter into the plantation industry with
huge potential and good future prospect.
The Directors believe that the Acquisition is a business opportunity in new emerging industry which
will broaden its revenue sources, and considered that the terms of the Acquisition Agreement are fair
and reasonable and in the interests of the Company and the Shareholders as a whole. At this stage, the
Directors have no existing plan to discontinue the Company’s existing garment business and expect that
these businesses will continue into the foreseeable future. Accordingly, the Directors confirm that there
will be no change in the principal business of the Company after completion of the Acquisition.