Investor Relations - News
Sale Of Property By Metalock Castings Sdn Bhd
The Directors of MTQ Corporation Limited (the "Company" or "MTQ") wish to announce that its 99.9% owned subsidiary, Metalock Castings Sdn Bhd ("Metalock Castings" or "Vendor"), has entered into a conditional Sale and Purchase Agreement (the "Agreement") with PMI-Technology Sdn Bhd ("PMI" or "Purchaser") for the sale of its property at Lot 120056, No. 3, Hala Jati 10, Taman Mene Industrial Estate, Jelapang 30020, Ipoh, Malaysia. (the "Sale") to PMI. The property has a land area of approximately 68,534 square feet.
Completion of the Sale is subject to both the Vendor and the Purchaser obtaining necessary regulatory approval in Malaysia (the "Approval") for the transfer of the Land to the Purchaser and to charge the Land to the Purchaser's bank. In the event that the Approval is not obtained, the Agreement shall be deemed terminated and all monies received will be refunded.
The cash consideration (the "Consideration") for the Sale, arrived at on a willing-buyer and willing-seller basis after negiotiations, is RM1,200,000 (approximately SGD517,000). The Consideration is payable to Metalock Castings in the following manner:
1. RM24,000 on the signing of the Letter of Intent to Purchase
2. RM96,000 on the signing of the Agreement;
3. Balance of RM1,080,000 to be paid to the Vendor's solicitors as stakeholders on or before the completion date which is subject to one month extension. The Vendor's solicitors shall then pay the balance sum to the Vendor, after retaining RM12,500 for real property gains tax and other lawful payments, upon the expiry of 14 days of presentation of the transfer and charge of documents for registration.
The disposal of the property by Metalock Castings follows the winding down of its foundry business in June 2001. The net book value of the property as at 30 September 2004 stood at RM1.1 million.
The proceeds from the Sale will be used to settle intercompany balances between the Company and Metalock Castings.
The above transaction is not expected to have a material impact on the consolidated net tangible assets per share and earnings per share of MTQ for the current financial year.
None of the Directors or substantial shareholders has any interest, direct or indirect, in the aforesaid transaction.
As this transaction does not exceed 20% of the Company's market capitalisation as at 7 January 2005, the Company will accordingly not be seeking shareholders' approval in respect of the provisions of Chapter 10 of the SGX-ST Listing Manual.
A copy of the Agreement is available for inspection during normal business hours at the Company's registered office at 182 Pandan Loop, Singapore 128373, for 3 months from the date of this announcement.
BY ORDER OF THE BOARD
MTQ CORPORATION LIMITED
Fong Choon Seng
Company Secretary
07.01.2005