General Announcement

Reference No CC-150217-60954

Company Name

:

IRE-TEX CORPORATION BERHAD

Stock Name

:

IRETEX

Date Announced

:

17/02/2015

 
TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS): NON RELATED PARTY TRANSACTIONS PROPOSED ACQUISITION BY IRE-TEX (JOHOR) SDN BHD, A SUBSIDIARY OF IRE-TEX CORPORATION BERHAD, OF TWO (2) PIECES OF INDUSTRIAL FREEHOLD LANDS FROM MODERN UNIT SDN. BHD. FOR A TOTAL CONSIDERATION OF RM1,223,460 TOGETHER WITH ENTERING INTO TWO (2) BUILDING AGREEMENTS WITH BLESSPLUS SDN. BHD. TO BUILD 1 STOREY WITH 2 MEZZANINE FLOORS SEMI-DETACHED FACTORY TO BE ERECTED ON BOTH LANDS FOR A TOTAL CONSIDERATION OF RM4,346,400.00 ("PROPOSED ACQUISTION”)


IRE-TEX CORPORATION BERHAD
 

Type

:

Announcement
 
Subject

:

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS)
NON RELATED PARTY TRANSACTIONS
 
Description

:

PROPOSED ACQUISITION BY IRE-TEX (JOHOR) SDN BHD, A SUBSIDIARY OF IRE-TEX CORPORATION BERHAD, OF TWO (2) PIECES OF INDUSTRIAL FREEHOLD LANDS FROM MODERN UNIT SDN. BHD. FOR A TOTAL CONSIDERATION OF RM1,223,460 TOGETHER WITH ENTERING INTO TWO (2) BUILDING AGREEMENTS WITH BLESSPLUS SDN. BHD. TO BUILD 1 STOREY WITH 2 MEZZANINE FLOORS SEMI-DETACHED FACTORY TO BE ERECTED ON BOTH LANDS FOR A TOTAL CONSIDERATION OF RM4,346,400.00 ("PROPOSED ACQUISTION”)
 
 
 
Further to the Company’s announcement on 10 February 2015 and the reply to Bursa Malaysia Securities Berhad’s query on 13 February 2015, Ire-Tex Corporation Berhad wishes to provide the following additional information relating to the Proposed Acquisition:

1. Details of the benchmarking exercise of market value undertaken for the land value and construction cost respectively.

Prior to the Proposed Acquisition, ITJSB had carried out a benchmarking exercise on the price of similar industrial properties at locations near to the Proposed Acquisition. Based on the benchmarking exercise, the price of industrial land ranged from RM45 per square foot to RM60 per square foot and construction/building cost ranged from RM218 per square foot to RM366 per square foot. The price of Land 1 and Land 2 in the Proposed Acquisition was RM45 per square foot and construction cost was RM240 per square foot. The comparison of the projects in the benchmarking exercise is set out in the attached Table A.

2. Net book value of Land 1 and Land 2 based on the latest audited financial statements (of the vendor) and the encumbrances, if any.

ITCB and ITJSB do not have access to the financial statements of the Vendor who is an external party and are unable to furnish the net book value of Land 1 and Land 2.

Land 1 and Land 2 are charged to AmIslamic Bank Berhad. It is a condition in both SPA 1 and SPA 2 that the Vendor shall at his/its own cost and expense cause all encumbrances including caveats of whatsoever nature over the Land 1 and Land 2 (if any), except for the caveats lodged by and/or for the benefit of ITJSB or ITJSB’s Financier (if any), to be removed.

If through no fault of ITJSB, the Land 1 and Land 2 are at any time during the continuance of the SPA 1 and SPA 2 encumbered or subject to any caveats whatsoever save and except for the existing chargee’s, ITJSB’s and/or ITJSB Financier’s caveats and such caveats hinder the progress on the part of ITJSB pertaining to the transaction herein, ITJSB shall without prejudice to ITJSB’s other rights and remedies be entitled to suspend the time for payment of the Balance Purchase Price and/or other monies as provided herein (if any) until the said encumbrances or caveats, as the case may be, is removed at the costs and expense of the Vendor. The Vendor shall further indemnify ITJSB against such penalties imposed by the Land Office/Registry for the late registration of the Memorandum of Transfer as a consequence of the said encumbrances or caveats, as the case may be.

Attachments :
Table A.pdf