Announcement Details :
The Company is pleased to announce that its wholly-owned subsidiary, Icon Line (Malaysia) Sdn Bhd has entered into a Joint Venture Agreement on 31 December 2008 with the following parties to set up a joint venture company in Thailand via the incorporation of a joint venture company known as Icon Freight Services Company Ltd ("JVCo"):-
1. Lim Kok Wee (Singapore Passport No: S7346563Z) & Wimolphan Bunpala (Thai Passport No: K701985) - (collectively known as "Lim Group")
and
2. Kittiwat Kitsiritaveewong (Thai ID No 3 1007 00512 431)
The intended activity of the JVCo is to provide integrated logistics services to and from Thailand.
Authorised Capital
The JVCo will have an authorized capital of Thai Baht Five Million (THB5,000,000) only divided into 10,000 (Ten Thousand) ordinary shares each of Thai Baht Five Hundred (THB500) only.
Shareholding Structure
The joint venture parties have agreed to and to participate in the share capital of the JV Company in the following proportions:-
Lim Group as held by Wimolphan Bunpala 49%
Icon Line (Malaysia) Sdn Bhd 49%
Kittiwat Kitsiritaveewong 2%
The initial paid up capital of the JV Company shall be Thai Baht Five Million (THB 5,000,000) only and shall be subscribed in cash in the following manner:-
Name Amount to be paid No of shares
Lim Group THB 2,450,000 4,900
Icon Line (Malaysia) Sdn Bhd THB 2,450,000 4,900
Kittiwat Kitsiritaveewong THB 100,000 200
The proposed Board of Directors of the JVCo shall comprise six (6) persons as follows:-
1. Four (4) directors to be appointed by Icon Line (Malaysia) Sdn Bhd
2. Two (2) directors to be appointed by Wimolphan Bunpala
Financial Effects
The joint venture agreement does not have any effect on the issued and paid up capital of the Company or on the shareholdings of the major shareholders and is not expected to have any material impact on FMHB's earning and net assets for the financial year ending 30 June 2009 but is expected to contribute positively in the future.
Approval Required
The joint venture agreement is not subject to approval of any relevant government or shareholders other than Bank Negara for the remittance of funds in respect of Icon Line (Malaysia) Sdn Bhd's share of the paid up share capital.
Directors' and Major Shareholders' Interests
None of the Directors, major shareholders of the Company and/or persons connected with the Directors and/or major shareholders has any interest, direct or indirect, in the Joint Venture arrangement.
Directors' Statement
Having considered all aspects of the joint venture project, the Board of Directors is of the opinion that the joint venture is in the best interest of FMHB Group. The Board is not aware of any departure from the Securities Commission's Policies and Guidelines.
