1. DETAILS OF THE RRPT
| Transacting Party |
Nature of the transactions |
Estimated Value of transaction (RM) |
| Edisi Optima Sdn Bhd |
Subcontracting works for Excavation, Rock Bolts, Pilecap works and Floating Boom for Construction and Completion of Log Boom for the Bakun Hydroelectric Project Package CW2 – Main Civil Works |
1.72 million |
The value of the above RRPT exceeds RM1.0 million, being the higher prescribed limit pursuant to paragraph 2.1 of Practice Note 12/2001 of the Listing Requirement.
2. DETAILS OF THE TRANSACTING PARTY
2.1 Edisi Optima Sdn Bhd (“EOSB”), is involved in the provision of General Engineering Services and Trading, Construction & Building, Requalification of LP-Gas Cylinders and related services.
2.2 The above recurrent transactions are considered related party transactions as Dato’ Anwarrudin bin Ahamad Osman who is a director of KKB, is also a major shareholder and Director of EOSB.
3. NATURE OF THE RRPT
The Recurrent Transactions are entered into in the ordinary course of business and are of a revenue and trading nature. These transactions are made on an arm’s length basis and on normal commercial terms that are in the best interest of the Company, not more favourable to the related party than those generally available to the public and are not detrimental to the minority shareholders and also not prejudicial to the interest of the shareholders or disadvantageous to the Company.
4. RATIONALE
Efficiency in business dealings and competitive prices, reliability of goods, materials and services, and shorter delivery time are the major advantages in dealing with EOSB. In addition, EOSB has a long-standing relationship with KKB and the Company being ISO 9001:2000 certified has proven to meet the stringent requirements of the Group. All these will ultimately benefit the Group and shareholders by enhancing profitability and maximizing returns on shareholders’ fund.
5. FINANCIAL EFFECTS OF THE RECURRENT TRANSACTIONS
The Recurrent Transactions have no material effect on the earnings per share and net assets per share of KKB.
6. DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTEREST
Save as disclosed in Paragraph 2.2 above, none of the other Directors, major shareholders of KKB and/or persons connected to them has any interest, direct or indirect in the Recurrent Transaction.
7. APPROVAL REQUIRED
The above RRPT does not require the approval of shareholders and relevant government authorities.
8. DIRECTORS’ STATEMENT
The Board of Directors of KKB, have considered all aspects of the transactions and are of the opinion that the RRPT is in the best interest of the Company and that the transaction is on terms which are not more favourable to the related party than those generally available to the public and will not be to the detriment of the minority shareholders, and hence, will not be prejudicial to the shareholders or disadvantageous to the Company.
