|Reference No: CM-101221-41271
|Company Name: CAHYA MATA SARAWAK BERHAD
|Stock Name: CMSB
|Date Announced: 21/12/2010
|Type: Reply to query
|Reply to Bursa Malaysia's Query Letter - Reference ID: N-101220-45747
|Subject: JOINT VENTURE AGREEMENT
|We refer to the announcement dated 17 December 2010 (Ref: CM-101216-52503) in relation to the above and Bursa Malaysia Securities Berhad’s ("Bursa Securities") letter dated 20 December 2010 (Ref: NN-101220-45747) for additional information on the abovementioned matter.
The additional information requested is as follows:
1. Breakdown of the total capital and investment outlay of the Joint Venture
Cahya Mata Sarawak Berhad (“CMSB” or “the Company”) wishes to clarify that the Project will broadly involve the following:
(a) the development of the new Samalaju township;
(b) the development of supporting light industries and service centers in Samalaju Industrial Park; and
(c) the development and management of temporary workers’ camp.
As mentioned in the Company’s announcement dated 17 December 2010, the Project will be implemented in stages. At the moment, the JV Company, Samalaju Property Development Sdn Bhd (“SPDSB”), is only working on the construction of a temporary workers’ camp for the first industry, Tokuyama Corporation of Japan, who is expected to move in in February 2011. The estimated capital and investment outlay in relation thereto is RM23 million.
At this juncture, the Company is not in the position to provide further financial details pertaining to the township development as it is still at the preliminary stage of negotiations with the State Government. However, as an indicative amount, the estimated RM1.5 billion, for Phase 1 of the township development, stated in the Company’s announcement dated 11 May 2010 (Ref: CM-100511-49624) remains the current best estimate for that particular part of the Project.
2. The eventual issued and paid-up capital of SPDSB
Pursuant to the Joint Venture Agreement (“JVA”), the initial issued and paid up capital of SPDSB shall be RM1 million divided into one million (1,000,000) ordinary shares of RM1.00 each. The eventual paid up capital of SPDSB will be determined by the company depending on its capital requirements and shall be altered (whether by way of reduction, increase, consolidation, subdivision or otherwise) in such manner as provided for under the JVA.
3. Details of the development of Samalaju Industrial Park (“Project”)
The only involvement of SPDSB in Samalaju Industrial Park is in the development of supporting light industries and service centers which are still at the preliminary stage of discussion with the State Government. The extent of this development work will ultimately depend on the number of actual industries locating to Samalaju Industrial Park.
4. Total development cost of the Project
As mentioned in (3) above, SPDSB’s only involvement in Samalaju Industrial Park is on the development of supporting light industries and service centers and as such, the total development costs will ultimately depend on the number of actual industries locating to Samalaju Industrial Park.
5. Expected commencement/completion date of the Project
As mentioned in (1) above, work has commenced on the development of temporary workers’ camp scheduled to be ready for Tokuyama Corporation of Japan’s contractors/workers to move in in February 2011. Work on the new township and supporting light industries and service centers will commence as soon as the detailed planning is finalised with the State Government.
The Project completion date is yet to be ascertained at this juncture however barring any unforeseen circumstances, it is expected that the total development period for the Project to be about twenty (20) years.
This announcement is dated 21 December 2010.
|Query Letter Content:
|We refer to your Company's announcements dated 17 December 2010, in respect of the aforesaid matter.
In this connection, kindly furnish Bursa Malaysia Securities Berhad ("Bursa Securities") with the following additional information for public release:-
Breakdown of the total capital and investment outlay of the Joint Venture;
The eventual issued and paid-up capital of Samalaju Property Development Sdn Bhd ("SPDSB");
Details of the development of Samalaju Industrial Park ("Project");
Total development cost of the Project; and
Expected commencement/completion date of the Project.
Please furnish Bursa Securities with your reply within one (1) market day from the date hereof.
HENG TECK HENG
Senior Manager, Issuers
copy to:- General Manager & Head, Market Surveillance, Securities Commission
|Announcement Details :