| Type | Announcement | ||||||||||||||||||
| Subject | TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) RECURRENT RELATED PARTY TRANSACTIONS |
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| Description | ANNOUNCEMENT ON RECURRENT RELATED PARTY TRANSACTION | ||||||||||||||||||
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Rimbunan Sawit Berhad (“RSB” or “the Company”) wishes to announce on the following recurrent related party transaction of a revenue and/or trading nature (“RRPTs”) entered into between RSB Group and its related parties:
The above amount of which by way of aggregation, have exceeded the prescribed limit of RM1 million in respect of recurrent transactions entered into as at 31 January 2013. Nature of RRPTs The RRPTs entered into by RSB Group are in the ordinary course of business. It is a recurring transaction of a revenue and/or a trading nature which were occurred with some degree of frequency and arise at any time and from time to time. These RRPTs may be constrained by the time-sensitive nature and confidentiality of such transaction made on an arm's length basis and on normal commercial terms which are not prejudicial to the interest of the minority shareholders and are on terms not more favourable to CCSB, ESSB, LTSB, RHSB and TTSS than those generally available to the public and are not detrimental to the interest of the minority shareholders. Rationale of RRPTs The rationale for RSB Group to enter into the RRPTs are to take advantage of efficiencies in business dealings, in particular to maximise the utilisation of available resources and to reduce the fixed overhead cost. The RRPTs met the business needs of RSB Group at the best possible terms. By transacting with CCSB, ESSB, LTSB, RHSB and TTSS, RSB Group would have an advantage of familiarity with the background, financial well-being and management of CCSB, ESSB, LTSB, RHSB and TTSS, thus enabling more informed commercial decisions to be made. In dealings with them, RSB Group, CCSB, ESSB, LTSB, RHSB and TTSS have a good understanding of each other’s business needs thus providing a platform where all parties can benefit from conducting the RRPTs. These would ultimately benefit the RSB Group and the shareholders by enhancing profitability and returns on shareholders’ funds. Effect of RRPTs on RSB Group The RRPTs are not expected to have any significant effect on the earnings per share, net assets per share, gearing, share capital and substantial shareholders’ shareholding of RSB. The nature and extent of the interests of the interested directors and major shareholders Tan Sri Datuk Sir Diong Hiew King @ Tiong Hiew King, the director and major shareholder of RSB, is also a director and shareholder of CCSB, ESSB and TTSS, and shareholder of LTSB and RHSB by virtue of his substantial indirect interest in these companies. Mr. Tiong Chiong Ong, the director of RSB, is also the director of and having indirect interest in the equity of CCSB, LTSB and TTSS. He is also a director of ESSB and RHSB. Pertumbuhan Abadi Asia Sdn. Bhd., the major shareholder of RSB, is also the shareholder of ESSB and RHSB, while Tiong Toh Siong Holdings Sdn. Bhd., the major shareholder of RSB, is the holding company of TTSS. Tiong Toh Siong Enterprises Sdn. Bhd., the shareholder of RSB, is also the shareholder of CCSB. Mr. Tiong Kiong King and Mr. Tiong Chiong Ie are the Directors of RSB. They are also deemed interested in the transactions by virtue of their family relationships with Tan Sri Datuk Sir Diong Hiew King @ Tiong Hiew King and Mr. Tiong Chiong Ong. Whether the RRPTs are subject to the approval of shareholders and the relevant government authorities The RRPTs are not subject to the approval of shareholders and the relevant government authorities. Statement by Directors The directors, saved for Tan Sri Datuk Sir Diong Hiew King @ Tiong Hiew King, Tiong Kiong King, Tiong Chiong Ong and Tiong Chiong Ie, having considered all aspects of the RRPTs, are in the opinion that the RRPTs are in the best interests of the Company and not detrimental to the interests of the minority shareholders. Statement by Audit Committee The Audit Committee having considered the rationale for the RRPTs and all aspects of the RRPTs, was of the view that the RRPTs are in the best interests of the Company, fair, reasonable and on normal commercial terms and not detrimental to the interests of the minority shareholders as the RRPTs were entered into in the ordinary course of business on normal commercial terms which are not more favourable to the related parties than those generally available to the public. This announcement is dated 21 February 2013. |
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| Company Name | RIMBUNAN SAWIT BERHAD |
| Stock Name | RSAWIT |
| Date Announced | 21 Feb 2013 |
| Category | General Announcement |
| Reference No | CC-130221-B2DAE |