Disposal of Entire 70% Equity Interest in LETC Engineering Sdn. Bhd.

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Type
:
 Announcement
Subject
:
Disposal of Entire 70% Equity Interest in LETC Engineering Sdn. Bhd.

Contents
:
1. Introduction

The Board of Directors ("Board") of Linear Corporation Berhad ("Linear" or "the Company") wishes to announce, pursuant to paragraph 9.19 (24) of the Listing Requirements of Bursa Malaysia Securities Berhad ("Bursa Securities"), that the Company had, on 26 December 2008, entered into a Sale and Purchase Agreement ("S&P") to dispose of its entire 70% equity inerest in LETC Engineering Sdn. Bhd. ("LETC") comprising 1,400,000 ordinary shares of RM1.00 each to Prakash s/o Ratha Krishnan, an unrelated third party, for a total cash sale consideration of RM1.00 ("the Disposal") thereby resulting in LETC ceasing to be a subsidiary of the Company upon completion of the Disposal.

Announcement Details :


2. Details of the Disposal

The sale consideration of RM1.00 was arrived at on a willing buyer willing seller basis after taking into consideration LETC's negative net asset value of RM4.889 million as at 31 December 2007. The S&P is completed upon signing on this 26 December 2008.

3. Information on LETC

LETC is a private company with limited liability and incorporated in Malaysia under the Companies Act, 1965 on 16 January 2001. LETC has an authorised share capital of RM5.0 million divided into 5.0 million ordinary shares of RM1.00 each, of which 2.0 million ordinary shares have been issued and fully paid-up as at the date hereof. LETC was principally involved in the business as mechanical and electrical contractor, project consultant and general trader but it has ceased operations since 2006.

4. Rationale for the Disposal

The Disposal is in line with the Company's continuing efforts to divest its non-profit making and non-core businesses within the Linear Group ("the Group").

5. Effects of the Disposal

The Disposal has no effect on the share capital and the substantial shareholding of the Company, and it will not have any material impact on the net assets of the Group.

6. Approvals Required

The Disposal is not subject to the approval of the Company's shareholders or the relevant authorities.

7. Directors' and Major Shareholders' Interests

None of the directors and/or major shareholders of the Company and/or persons connected with the directors and/or major shareholders have any interest, direct or indirect, in the Disposal.

8. Statement by Directors

The Board, after having considered all aspects of the Disposal, is of the opinion that the Disposal is in the best interest of the Company and the Group.