Contents :
The Board of Directors of KKB Engineering Berhad ("KKB" or "the Company") wishes to announce that the Company is proposing to vary the utilization of proceeds under the Rights Issue.
The Rights Issue comprises 7,385,500 new ordinary shares of RM1.00 each issued on the basis of one ordinary share for every 2 existing ordinary shares held. In addition the proceeds from the Rights Issue was approved by the Securities Commission ("SC") to be utilized in the manner as tabulated below:-
 |
Utilization
|
As Approved By Shareholders on 27.2.2002
|
As Per Announcement dated 30.10.2002
|
Proposed Variation
|
| a. |
Upgrading of LPG Cylinder Manufacturing Plant
|
RM6.10 million
|
RM3.3 million
|
RM3.3 million
|
| b. |
Working Capital |
-
|
RM1.5 million
|
RM2.8 million
|
| c. |
Deferment of Expenditure on LPG Plant Equipment and Machinery till 16.11.2003
|
-
|
RM1.3 million
|
-
|
|
Total |
RM6.10 million
|
RM6.10 million
|
RM6.10 million
|
The above variation amounting to RM1.3 million from the initial purpose of upgrading of the LPG Cylinder Manufacturing Plant via acquisition of equipment and machinery to working capital is proposed by KKB due to the followings:- i) The moderate off-take of LPG cylinders due to slower demand from the market and the productivity level has reached a satisfactory level for the present level of off-take of cylinders after the initial acquisition. ii) The Company is currently expanding its construction activities to be in line with its business outlook in which it is expected that the Group will secure several new contracts in the current year. Approval of the SC for the above Proposed Variation is not required as it involves variation in the utilization of proceeds within the core business activities of the Group. However, the approval of the Shareholders of KKB would be required to be obtained at the forthcoming AGM to be convened pertainng to the above Proposed Variation as the amount exceeds the 25% variation threshold as stipulated by the SC. A Circular containing details of the above and the Notice of AGM will be dispatched to the Shareholders of KKB in due course.
