News

Rimbunan Sawit Berhad (“RSB” or “the Company”) wishes to announce that the Company and its 100% owned subsidiary, R.H. Plantation Sdn. Bhd. (“RHP”) have acquired two (2) units of motor vehicles, from a related party, Mr. Tiong Chiong Ie (“the Vendor”), at a total cash consideration sum of Ringgit Malaysia Three Hundred and Fifty Thousand Only (RM350,000.00) (“Transaction”).

RATIONALE OF THE TRANSACTION

The said motor vehicles are acquired for use by the Managing Director of the Company and for general use.

DETAILS OF THE TRANSACTION

RSB and RHP have acquired one (1) unit each of Mercedes Benz from the Vendor at a cash consideration sum of Ringgit Malaysia Two Hundred and Fifty Thousand Only (RM250,000.00) and Ringgit Malaysia One Hundred Thousand Only (RM100,000.00) respectively.

DETAILS OF THE PURCHASE CONSIDERATIONS

The purchase considerations of the said motor vehicles were based on a willing buyer and willing seller basis after taking into consideration inter alia, the original costs and the condition of the said motor vehicles.

SOURCE OF FUNDING FOR THE TRANSACTION

The purchase consideration shall be fully satisfied in cash by utilising internal generated fund of RSB Group.

RISK FACTOR

The Board does not envisage any specific risk to be associated with the Transaction.

EFFECT OF THE TRANSACTION

The Transaction will not have any material effect to the earnings per share, net assets per share, gearing, share capital and substantial shareholders' shareholding of RSB.

PARTICULARS OF ALL LIABILITIES, INCLUDING CONTINGENT LIABILITIES AND GUARANTEES TO BE ASSUMED BY RSB ARISING FROM THE TRANSACTION

There is no liability, including contingent liability and guarantee to be assumed by RSB arising from the Transaction.

THE ORIGINAL COSTS OF THE SAID MOTOR VEHICLES TO THE VENDOR AND DATES OF THE ACQUISITION OF THE SAID MOTOR VEHICLES

The two (2) units of Mercedes Benz acquired by RHP and RSB were purchased by the Vendor on 1 July 1997 and 15 January 2001 at original costs at RM450,000 and RM800,000 respectively.

THE NATURE AND EXTENT OF THE INTERESTS OF THE INTERESTED DIRECTORS AND/OR MAJOR SHAREHOLDERS

The Vendor is the director of RSB.

WHETHER THE TRANSACTION IS SUBJECT TO THE APPROVAL OF SHAREHOLDERS AND THE RELEVANT GOVERNMENT AUTHORITIES AND THE ESTIMATED TIME FRAME FOR SUBMISSION OF THE APPLICATION TO THE RELEVANT AUTHORITIES

The Transaction is not subject to the approval of the shareholders and other relevant government authorities.

THE SALIENT FEATURES OF THE AGREEMENTS ON THE TRANSACTION, IF ANY, AND THE TIME AND PLACE WHERE THE DOCUMENTS MAY BE INSPECTED

There is no formal agreement pertaining to the Transaction.

THE DATE(S) ON WHICH THE TERMS OF THE TRANSACTION WAS AGREED UPON

The terms of the Transaction have been agreed upon on 27 August 2008.

ESTIMATED TIMEFRAME FOR COMPLETION OF THE TRANSACTION

The Transaction was completed on 27 August 2008.

STATEMENT BY DIRECTORS

The Board, saved for Mr. Tiong Chiong Ie, having considered all aspects of the Transaction, was of the opinion that the Transaction is in the best interest of the Company and not to the detriment of the minority shareholders.