Acquisition of the remaining 70,000 ordinary shares of RM1-00 each representing 35% of the equity interest in Embrace Industries Sdn. Bhd. (EISB) (Proposed Acquisition)
| HOMERITZ CORPORATION BERHAD |
| Type | Reply to Query |
| Reply to Bursa Malaysia's Query Letter - Reference ID | IQL-02062015-00003 |
| Subject | Acquisition of the remaining 70,000 ordinary shares of RM1-00 each representing 35% of the equity interest in Embrace Industries Sdn. Bhd. (EISB) (Proposed Acquisition) |
| Description | Homeritz Corporation Berhad Acquisition of the remaining 70,000 ordinary shares of RM1-00 each representing 35% of the entire equity interest in Embrace Industries Sdn. Bhd. |
| Query Letter Contents |
We refer to your Company’s announcement dated 1 June 2015, in respect of the aforesaid matter.
In this connection, kindly furnish Bursa Securities with the following additional information for public release:-
1) The salient terms of the agreement for the Proposed Acquisition and the date of such agreement was agreed upon. To also make the aforesaid agreement available for inspection.
2) Detailed basis to arrive at the purchase consideration of RM12,167,400 taking into account the following:-
(a) The net tangible assets of EISB as at 31 August 2014; and
(b) The price/earnings ratio (“PER”) of EISB as compared to PER of Homeritz Corporation Berhad (“Homeriz”) and other companies involved in furniture business listed in Bursa Malaysia Securities Berhad.
3) Quantification of the revenue and profit contribution (in percentage) from EISB based on the latest audited financial statements.
4) Based on the revenue and profit contribution above, please justify further on the rationale to acquire the remaining 35% equity interests in EISB which is already a subsidiary of Homeriz.
5) Whether there is any non-competition clause imposed on the vendors after completion of the Proposed Acquisition. If yes, to incorporate the terms thereof. If no, to justify the reasons for not having the clause.
6) The outlook of furniture industry in Malaysia and other principle markets for EISB’s products, and the prospects of EISB in light of the industry outlook.
Please furnish Bursa Securities with your reply within one (1) market day from the date hereof.
Yours faithfully,
HENG TECK HENG Vice President, Issuers, Listing Division, Regulation IJ/TEK
Cc : Market Surveillance Dept. , Securities Commission (via fax)
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For consistency purposes, the abbreviations and definations used throughout this announcement are the same as those previously defined in the announcement dated 01 June 2015 unless otherwise stated.
Our announcement dated 01 June 2015 and the query letter from Bursa Malaysia Securities Berhad dated 02 June 2015 in relation to the Acquisition were referred.
We append herewith the following additional information as set out in the attachment below for public release.
This announcement is dated 03 June 2015.
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Please refer attachment below.
Announcement Info
| Company Name | HOMERITZ CORPORATION BERHAD |
| Stock Name | HOMERIZ |
| Date Announced | 03 Jun 2015 |
| Category | General Announcement for PLC |
| Reference Number | GA1-02062015-00054 |
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