| Type | Announcement | ||||
| Subject | TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) RECURRENT RELATED PARTY TRANSACTIONS |
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| Description | RECURRENT RELATED PARTY TRANSACTION |
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Introduction Rimbunan Sawit Berhad (“RSB” or “the Company”) wishes to announce on the recurrent related party transaction of a revenue and/or trading nature (“RRPT”) entered into between Burung Tiong Helicopter Sdn. Bhd. (“BTH”), which is 85% owned by RSB and Helitech Aviation Services Sdn. Bhd. (“HASB”)
The above amount of which by way of aggregation, have exceeded the prescribed limit of RM1 million in respect of recurrent related party transaction entered into for the period from 1 August 2011 to 31 December 2011. Nature of RRPT The RRPT entered into by RSB Group is in the ordinary course of business. It is a recurring transaction of a revenue and/or a trading nature which was occurred with some degree of frequency and arise at any time and from time to time. This RRPT 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 HASB than those generally available to the public and are not detrimental to the interest of the minority shareholders. Rationale of RRPT The rationale for RSB Group to enter into the RRPT is to take advantage of efficiencies in business dealings, in particular competitive prices and reliability in source of services. The RRPT met the business needs of RSB Group at the best possible terms. By transacting with HASB, RSB Group would have an advantage of familiarity with the background, financial well-being and management of HASB, thus enabling more informed commercial decisions to be made. In dealings with HASB, RSB Group and HASB have a good understanding of each other’s business needs thus providing a platform where all parties can benefit from conducting the RRPT. These would ultimately benefit the RSB Group and the shareholders by enhancing profitability and returns on shareholders’ funds. Effect of RRPT on RSB Group The RRPT is 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 Dato’ Muhammad Arif Stephen bin Abdullah is the director and major shareholder of BTH. Dato’ Muhammad Arif Stephen bin Abdullah is interested in the RRPT by virtue of his directorship and substantial interest in HASB. Whether the RRPT is subject to the approval of shareholders and the relevant government authorities The RRPT is not subject to the approval of the relevant government authorities. Statement by Directors The directors having considered all aspects of the RRPT, are in the opinion that the RRPT is 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 RRPT and all aspects of the RRPT, was of the view that the RRPT is 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 RRPT was entered into in the ordinary course of business on normal commercial terms which is not more favourable to the related parties than those generally available to the public. |
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| Company Name | RIMBUNAN SAWIT BERHAD |
| Stock Name | RSAWIT |
| Date Announced | 12 Jan 2012 |
| Category | General Announcement |
| Reference No | CC-120111-E4A74 |