Announcement Details :
1. INTRODUCTION
Pursuant to Paragraph 10.09 and Practice Note No. 12/2001 of the Listing Requirements of Bursa Malaysia Securities Berhad ("Listing Requirements") the Board of Directors of Freight Management Holdings Bhd ("FMHB") wishes to announce that TCH Marine Pte Ltd ("TCHM"), a 51% subsidiary of the Company has entered into and will be entering into recurrent related party transactions of a revenue or trading nature which are necessary for the day-to-day operations of TCHM with a related party.
2. DETAILS OF THE RECURRENT RELATED PARTY TRANSACTION
The details of the recurrent related party transaction are as follows:-
i) Transacting parties
TCHM and Poo Hua (Pte) Ltd ("Poo Hua") ii) Nature of transaction
Provision of barge services by TCHM to Poo Hua, a company which is controlled by persons connected to a Director/Shareholder of TCHM
The provision of barge services by TCHM to Poo Hua is regarded as a related party transaction by virtue of the following relationship:-
Mr Andrew Tay Nguang Yeow is a director and major shareholder of TCHM and also a director and major shareholder of Poo Hua.
3. RATIONALE
The recurrent related party transactions are expected to occur with some degree of frequency from the period of this announcement until the date of FMHB's Annual General Meeting in 2008. This announcement seeks to cover and disclose the recurrent related party transactions entered into or proposed to be entered into between the parties and it will not be necessary for FMHB to make separate announcement each time a transaction covered under the recurrent related party transactions occurs. This will reduce substantially the administrative time, inconvenience and expenses associated with the making of announcements without compromising the corporate objectives of FMHB or adversely affecting the business opportunities available to the FMHB Group.
4. FINANCIAL EFFECTS
The recurrent related party transactions will not have any effect on the issued and paid-up share capital or on the shareholdings of the major shareholders of FMHB.
The recurrent related party transactions are not expected to have any material effect on the net assets and the earnings of the Company.
5.INTERESTS OF THE DIRECTORS, MAJOR SHAREHOLDERS AND PERSONS CONNECTED TO THEM
Save as disclosed above, and other than Mr Andrew Tay Nguang Yeow who is a director in both TCHM and Poo Hua, none of the Directors and/ or major shareholders of the Company and the Group and/or persons connected to them have any interest, direct or indirect in the above recurrent related party transactions.
6. DIRECTORS' STATEMENT
The Board of Directors of FMHB having considered the rationale for the transaction, is of the opinion that the recurrent related party transaction is in the best interest of the Group.
7. APPROVAL REQUIRED
The recurrent related party transaction was not included in the existing shareholders' mandate and approval is to be obtained from the shareholders of FMHB at its forthcoming Annual General Meeting.
