General Announcement
Reference No FC-061201-62754 |
| Stock Name |
: FRONTKN |
| Date Announced |
: 01/12/2006 |
| Type |
: Reply to query |
| Reply to Bursa Malaysia's Query Letter - Reference ID |
: HA-061130-54251 |
| Subject |
: Reply to Query on articles entitled
"Frontken to step up presence in North
Asia" and "Frontken buys 19pc stake in
Taiwan firm" |
| |
| Contents : |
We refer to the query from Bursa Malaysia Securities Berhad ("Bursa Securities") on 30 November 2006 in relation to the articles "Frontken to step up presence in North Asia" in the Sun and "Frontken buys 19pc stake in Taiwan firm" in The New Straits Times on the same day, which highlighted the following quotes:
"…revenue of RM1 billion and 20% net profit margin."
"…said it planned for acquisitions to account for half of its targeted RM1 billion revenue."
We confirm the above statements which we made in response to questions posed by the press. The above statements were made in perspective of our internal budgeting targets as part of our continuous business planning process and they take into consideration the anticipated increased contributions from new business developments, existing businesses, and wider customer base and greater market outreach arising from targeted merger and acquisition. It is our management's targeted budget to achieve RM1 billion revenue and 20% net profit margin in five (5) years' time. These growth targets are set as part of our on-going effort to continuously review our investment strategy and explore all available opportunities to cater to our business and market expansion needs.
We wish to clarify that the above statements were not intended to refer to any financial estimate, forecast or projection of our Group, and have not been reviewed by the external auditors.
"Frontken is buying 19% of Ares Green from Taiwan-based Evergreen Development Corp for NT$210.9 million (RM23.4 million)…"
On 28 November 2006, we announced that the Company entered into an exclusive and confidential agreement with Evergreen Development Corp. for the exclusive rights to evaluate and negotiate for the proposed acquisition of 5,700,000 shares in Ares Green Technology Corporation ("AGTC"), representing 19.0% of the total outstanding capital stocks of 30,000,000 shares of NT$10.0 (equivalent to RM1.11) each in AGTC at NT$37.0 (equivalent to RM4.10) per share or for a total cash consideration of NT$210,900,000 (equivalent to RM23.4 million), based on the exchange rate of NT$9.0228 : RM1.00).
"…We hope to apply for a transfer to Bursa Malaysia's main board listing by July next year…"
It is our intention to transfer the listing of the Company to the Main Board of Bursa Securities in the future upon meeting the relevant requirements. An announcement will be made at an appropriate time should the Company decide to proceed with the transfer of listing.
This announcement is dated 1 December 2006.
Query Letter content :
We refer to the above articles appearing in The Sun, Business News Section,
page 23 and The News Straits Times, BizNews Section, page 42 on Thursday, 30
November 2006 respectively, copies of which are enclosed for your reference.
In particular, we would like to draw your attention to the underlined
sentences, which is reproduced as follows:-
1. "Frontken to step up presence in North Asia"
"... revenue of RM1 billion and a 20% net profit margin."
" ...said it planned for acquisitions to account for half of its targeted RM1
billion revenue."
"Frontken is buying 19% of Ares Green from Taiwan-based Evergreen Development
Corp for NT$210.9 million (RM23.4 million)..."
2. "Frontken buys 19pc stake in Taiwan firm"
"...We hope to apply for a transfer to Bursa Malaysia's main board listing by
July next year..."
In accordance with the Exchange's Corporate Disclosure Policy, you are
requested to furnish the Exchange with an announcement for public release
confirming or denying the above reported article and in particular the
underlined sentences after due and diligent enquiry with all the directors,
major shareholders and all such other persons reasonably familiar with the
matters about which the disclosure is to be made in this respect. In the event
you deny the above sentences or any other part of the above reported article,
you are required to set forth facts sufficient to clarify any misleading
aspects of the same. In the event you confirm the above sentences or any other
part of the above reported article, you are required to set forth facts
sufficient to support the same, including the relevant bases and assumptions in
arriving at the above forecast. In this respect, (for item 1) you are also
required to confirm whether the accounting bases, calculations and assumptions
have been reviewed by the external auditors.
Please furnish the Exchange with your reply within one (1) market day from the
date hereof.
Yours faithfully
SUZALINA HARUN
Head, Issuers
Listing Division
Group Regulations
SUZ/HA
c.c. Encik Chung Tin Fah, Securities Commission (via fax) |
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