| Type | Announcement | ||||||
| Subject | ANNOUNCEMENT ON RECURRENT RELATED PARTY TRANSACTION | ||||||
| Contents | 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 RSB Group and a related party. | ||||||
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Introduction
RSB wishes to announce on the following RRPT entered into between RSB Group and Cityvine Development Sdn. Bhd. (“CDSB”) :-
The above amount of which by way of aggregation, have exceeded the prescribed limit of RM1 million in respect of recurrent transactions entered into during the period from September 2008 to November 2009. 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 not prejudicial to the interest of the shareholders and not more favourable to CDSB than those generally available to the public and is not detrimental to 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, shorter delivery time and reliability in source of materials, goods and services. The RRPT met the business needs of RSB Group at the best possible terms. By transacting with the CDSB, RSB Group would have an advantage of familiarity with the background, financial well-being and management of CDSB, thus enabling more informed commercial decisions to be made. In dealings with CDSB, RSB Group and CDSB 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 Group. Source of funding of the RRPT The source of funding for the RRPT is by utilising internal generated fund. The nature and extent of the interests of the interested directors and major shareholders Tiong Chiong Ong, the Managing Director of RSB, is also a director and major shareholder of CDSB, by virtue of his substantial interests in CDSB. His spouse is also a director and major shareholder of CDSB. Whether the RRPT is subject to the approval of shareholders and the relevant government authorities The RRPT is not subject to the approval of shareholders and the relevant government authorities. Statement by Directors The directors, saved for Tiong Chiong Ong, having considered all aspects of the RRPT, are in the opinion that the RRPT is in the best interest of the Company and not to the detriment of the minority shareholders. Statement by Audit Committee The Audit Committee, having considered the nature and rationale for the RRPT, is of the view that the RRPT is in the best interest of the Company, fair, reasonable and on normal commercial terms and not detrimental to the interest of the minority shareholders. |
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| Company Name | RIMBUNAN SAWIT BERHAD |
| Stock Name | RSAWIT |
| Date Announced | 24 Nov 2009 |
| Category | General Announcement |
| Reference No | CC-091123-59946 |