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Transactions (Chapter 10 Of Listing Requirements) : Recurrent Related Party Transactions

< BackSep 14, 2016

 

Type Announcement
Subject TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS)
RECURRENT RELATED PARTY TRANSACTIONS
Description

Recurrent Related Party Transactions ("RRPT") of a Revenue or Trading Nature - Purchase of Fresh Fruit Bunches (FFB)

INTRODUCTION

The Board of Sarawak Plantation Berhad ("SPB") wishes to announce that its wholly owned subsidiary, Sarawak Plantation Agriculture Development Sdn. Bhd. (SPAD) has in the ordinary course of its buisness, entered into recurrent related party transactions ("RRPT") with KUB Sepadu Sdn. Bhd. ("the Related Party"). For the period from 21 May 2016 to 11 September 2016, the aggregate amount of such RRPT stands at RM7,621,273.40, exceeding the 1% percentage ratio.

RATIONALE

The Related Party sold the FFB to SPAD's mill based on commercial terms, business practices and policies similar to those offered to other sellers of FFB.

FINANCIAL IMPACT OF THIS RRPT

This RRPT does not have any material effect on the net assets of the Group, earnings per share, share capital and substantial shareholders' shareholding of SPB.

RISKS IN RELATION TO THIS RRPT

Barring any unforeseen circumstances, the Board of SPB does not foresee any major risks in relation to this RRPT.

DIRECTORS AND MAJOR SHAREHOLDERS' INTEREST

The Chairman of SPB, Datuk Amar Abdul Hamed bin Sepawi, is a shareholder of Medan Sepadu Sdn. Bhd., a company who holds 30% equity interest in the Related Party. Accordingly, Datuk Amar Abdul Hamed bin Sepawi is deemed to be interested in the transaction.

Encik Polit bin Hamzah, a director of SPB, is also a director of the Related Party.

Save as disclosed above, none of the other Directors and / or major shareholders of SPB and persons connected with them have any interests, direct or indirect, in this RRPT.

WHETHER THIS RRPT IS SUBJECT TO THE APPROVAL OF SHAREHOLDERS AND THE RELEVANT GOVERNMENT AUTHORITIES

This RRPT is not subject to the approval of the shareholders nor that of any government authorities.

STATEMENT BY THE AUDIT COMMITTEE

The Audit Committee, having considered the rationale of this RRPT is of the view that this RRPT is:

(a) fair, reasonable and based on generally acceptable commercial terms not more favourable to the Related Party. In fact the sale of FFB is based on commercial terms, business practices and policies similar to those offered to other sellers of FFB to SPAD's mill;

(b) the terms, business practices and policies are in line with the industry's standards;

(c) not prejudicial / detrimental to the interests of the minority shareholders; and

(d) in the best interest of the Group.

DIRECTORS' RECOMMENDATION

The Board of SPB, with the exception of Datuk Amar Addul Hamed bin Sepawi and Encik Polit bin Hanzah, has considered all aspects of this RRPT and is of the opinion that this RRPT is established on normal commercial terms, is in the best interest of the Group and is not prejudicial / detrimental to the interests of the minority shareholders of SPB.

This announcement is dated 14 September 2016.

 

 





Announcement Info

Company Name SARAWAK PLANTATION BERHAD
Stock Name SWKPLNT
Date Announced 14 Sep 2016
Category General Announcement for PLC
Reference Number GA1-14092016-00067