| Contents |
:
|
1) INTRODUCTION
The Board of Directors of Dayang Enterprise Holdings Bhd ('Dayang') wishes to announce that it had on 14 January 2010 entered into a Joint Venture Agreement with Alphaone Engineering Sendirian Berhad ('Alphaone')to co-operate in the preparation of technical and commercial proposals and project execution of projects in the Oil and Gas sector in the territory of Brunei Darussalam.
2) BACKGROUND INFORMATION OF ALPHAONE
Alphaone is a company with limited liability incorporated in Negara Brunei Darussalam. The principal activity of Alphaone is selling and generally dealing in all kinds and types of oil field and mining equipment, materials, machinery tools, pipelines, communication equipment and other requirements for exploration, drilling, producing, transporting, processing and marketing of minerals including petroleum hydrocarbon and natural gas.
3) DETAILS OF THE JOINT VENTURE
The JV company shall be incorporated as promptly as possible after the execution of the Joint Venture Agreement in accordance with the laws of Brunei Darussalam, with an authorised share capital of B$1,000,000.00 comprising 1,000,000 ordinary shares of B$1.00 each.
The equity structure of the JV company shall be as follows:-
Shareholder and percentage
Dayang 50%
Alphaone 50%
4) RATIONAL FOR THE JOINT VENTURE
The parties have principally agreed to form a joint venture company to engage in maintenance services for topside structures, pipes and valves, electrical and instrumentation, fabrication operations and hook-up commissioning services, chartering of marine vessels, including floating accommodation and catering, rental of equipment and machinery to the various players in the oil and gas industry in the territory of Brunei Darussalam together with all other activities which are complementary to or coincidental with or necessary for the carrying out of or may properly be combined with or conducive to the realisation of the aforesaid objects.
This joint venture provides an opportunity for Dayang to venture into the overseas market in its effort to reinforce its competitive edge in the Oil and Gas industry.
5) SOURCE OF FUNDS
The initial capital investment is estimated to be RM250,000.00, Dayang's portion of approximately RM125,000.00 shall be funded by internally generated funds and/or financing from banks or financial institutions.
6) FINANCIAL EFFECTS OF THE JOINT VENTURE
The Joint Venture is expected to contribute positively to the earnings and net assets of Dayang in the future.
7) SHARE CAPITAL AND SUBSTANTIAL SHAREHOLDERS' SHAREHOLDINGS
The Joint Venture will not have any effect on the issued and paid-up capital and substantial shareholders' shareholdings of Dayang.
8) DIRECTORS, MAJOR SHAREHOLDERS INTEREST
None of the Directors and/or major shareholders of Dayang and/or persons connected to them have any interest, whether direct or indirectly in the Joint Venture.
9) APPROVALS REQUIRED
The Joint Venture is not subject to the approval of the shareholders of Dayang or any other authorities.
10)DIRECTORS RECOMMENDATION
The Board having considered all relevant factors in the respect of the Joint Venture is of the opinion that the Joint Venture is in the best interest of the Company and its shareholders.
11)DOCUMENT FOR INSPECTION
The Joint Venture Agreement is available for inspection at the registered office of Dayang at Sublot 5-10, Lot 46, Block 10, Jalan Taman Raja, 98000 Miri, Sarawak during normal working hours for a period of fourteen days from the date of this announcement.
This announcement is dated 15 January 2010. |
|
