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Agreement to Sublease

BackApr 17, 2009
General Announcement
Reference No DE-090417-59630

 

Company Name
:
DAYANG ENTERPRISE HOLDINGS BERHAD
Stock Name
:
DAYANG
Date Announced
:
17/04/2009


Type
:
Announcement
Subject
:
DAYANG ENTERPRISE HOLDINGS BHD
- Agreement to Sublease

Contents
:
INTRODUCTION

The Board of directors of Dayang Enterprise Holdings Bhd ("the Company" or "Dayang") wishes to announce that the Company has on 17th April 2009 entered into an Agreement to Sublease with Kunci Prima Sdn Bhd for a rental of 6 units of shophouses at 1st Mile, Riam Road, Miri.

SALIENT TERMS OF THE AGREEMENT TO SUBLEASE

a) Sublessor: Kunci Prima Sdn. Bhd. (Company no. 756549-V) ("KPSB")
b) Sublessee : Dayang Enterprise Holdings Bhd
c) Location 6 units 3 storey commercial shophouses fully renovated at 1st Mile, Riam Road, Miri described as Sublot 5 to 10 (Survey Lot 1130 to 1135) of parent Lot described as Lot 46 Block 10 Miri Concession Land District, Miri.
d) Period of sublease: ten (10) years with an option for a further sublease period of five (5) years before expiry of the first ten (10) years.
e) Date of commencement: 1st May 2009 to 30th April 2019.
f) Monthly rental: RM56,400 for the first 5 years and RM62,040 for the next 5 years against a monthly rental valuation of RM69,000 submitted by Valuer, JS Valuers Property Consultants (Sarawak) Sdn. Bhd.

INFORMATION OF KPSB

KPSB is the sublessor principally engaged in investment holding. The directors and shareholders of KPSB are as follows:-

Directors and shareholders of KPSB and % of shareholding

1) Tengku Yusof Bin Tengku Ahmad Shahruddin - 50%
2) Mr Ling Suk Kiong - 20%
3) Mdm Wong Siew Hong (spouse of Mr Ling Suk Kiong) - 15%
4) Mr Joe Ling Siew Loung @ Lin Shou Long (son of Mr Ling Suk Kiong) - 15%

RATIONALE

The Agreement to Sublease will enable Dayang Group to expand and centralise its corporate and operational offices within 1 location. This will bring about time and costs saving measures by the reduction of staff coordination time to liaise with different departments and reduction of building maintenance.

FINANCIAL EFFECTS

The Agreement of Sublease will have negligible effect on the earnings per share, net asset per share, gearing, share capital and substantial shareholders' shareholdings of the Company.

INTEREST OF DIRECTORS, MAJOR SHAREHOLDERS AND PERSONS CONNECTED

Save as disclosed below :-
Tengku Yusof Bin Tengku Ahmad Shahruddin ( Managing Director)
Mr Ling Suk Kiong ( Executive Deputy Chairman)
Mdm Wong Siew Hong ( spouse of Mr Ling Suk Kiong)
Mr Joe Ling Siew Loung @ Lin Shou Long (Deputy Managing Director) ( son of Mr Ling Suk Kiong)

None of the other directors or major shareholders of Dayang or persons connected with them has any interest, whether direct or indirect, in the proposed sublease.

Accordingly, Tengku Yusof Bin Tengku Ahmad Shahruddin, Mr Ling Suk Kiong nad Mr Joe Ling Siew Loung@ Lin Shou Long have abstained from all deliberations and voting on the agreeement to Sublease.

STATEMENT BY THE BOARD OF DIRECTORS

The Board of Directors ( with the exception of Tengku Yusof Bin Tengku Ahmad Shahruddin, Mr Ling Suk Kiong and Mr Joe Ling Siew Loung @ Lin Shou Long) having considered all aspects of the Sublease of the premises and is of the opinion that the transaction is at arms length basis and not to the detriment to the minority shareholders.

APPROVAL REQUIRED

The Company will be seeking shareholders' mandate for the recurrent related party transactions at the forthcoming Annual General Meeting.


This announcement is dated 17 April 2009.

Announcement Details :