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Reply to query |
| Reply to Bursa Malaysia's Query Letter - Reference ID |
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NM-110119-39723 |
| Subject |
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| ACQUISITION OF PROPERTY BY FREIGHT MANAGEMENT (M) SDN BHD, A WHOLLY-OWNED SUBSIDIARY OF FREIGHT MANAGEMENT HOLDINGS BERHAD ("Acquisition") |
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| Contents |
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Reference is made to the announcement made by Freight Management Holdings Berhad on 17 January 2011 and 21 January 2011 respectively and the query letter from Bursa Malaysia Securities Berhad ("Bursa Securities") dated 19 January 2011 on the subject matter. In response to the telephone enquiries from Bursa Securities on 24 January 2011 for further clarification, we reply as follows:
i. Particulars of contingent liabilities and guarantees to be assumed by FMMSB arising from the Acquisition.
As per item 3.4 in the announcement dated 17 January 2011 the Property is purchase free from encumbrances. Hence there would be no contingent liabilities and guarantees to be assumed by FMMSB arising from the Acquisition.
ii. Salient features of the valuation report and the time and place where the valuation report may be inspected.
Salient features of the valuation report:-
(a) Name of Independent Valuer : Colliers, Jordan Lee & Jaafar (S) Sdn Bhd
(b) Method of Valuation : Cost Method of Valuation
(c) Date of Valuation Report: 16 November 2010
(d) Quantificaton: The Independent Valuer is of the opinion that the market value of the Property is RM14,550,000.00
The Valuation Report is available for inspection at the Company's Registered Office at Level 18, The Gardens North Tower, Mid Valley City, Lingkaran Syed Putra, 59200 Kuala Lumpur from 8.30 am to 5.30 pm, Monday to Friday (except public holidays) for a period of three months from 17 January 2011.
iii. Prospects of the Property
Upon completion of the Acquisition the Group's warehousing facilities will increase by approximately 90,000 sq ft. About 40,000 sq ft of the available space has been allocated as bonded warehouse space which will accommodate our CFS (Container Freight Station) activities, currently housed at Northport Berhad's warehouse in Port Klang. The balance of approximately 50,000 sq ft shall be utilised to cater for the warehousing requirements of our existing and potential customers who have indicated their warehousing requirements.
The added warehouse space provides opportunities and is expected to have a positive impact on the warehousing and distribution activities of the company which in turn is expected to contribute positively to the future earnings of the Group. |
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We refer to your announcement dated 17 January 2011 in respect of the above
matter.
In this connection, kindly furnish Bursa Malaysia Securities Berhad ("Bursa
Securities") with the following additional information for public release:-
1. Details of Axis Real Estate Investment Trust.
2. The amount of lettable space of the Property.
3. Particulars of contingent liabilities and guarantees to be assumed by
FMMSB arising from the Acquisition.
4. Whether Colliers, Jordan Lee & Jaafar (S) Sdn Bhd is an independent
registered valuer.
5. Salient features of the SPA and valuation report, and the time and place
where the valuation report may be inspected
6. Prospects of the Property.
7. The estimated time frame for submission of the application in relation to
the Acquisition to the State Authority.
Please furnish Bursa Securities with your reply within one (1) market day from
the date hereof.
Yours faithfully
TAN YEW ENG
Head, Issuers
Listing Division, Regulation
TYE/NMA
c.c:- Head, Market Surveillance Department, Market Supervision Division,
Securities Commission (via fax) |
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