– CESSATION OF PC GLOBAL TRENDS SDN BHD AS SUBSIDIARY OF THE COMPANY.

PC Global was incorporated on 11 June 2014. It is principally engaged in the business as importers, exporters, retailers agent of boots, leather shoes, track shoes, rubber soled shoes and dealers in all kind of leather hides, rubber soles, skins, etc.

The issued and paid-up capital is RM800,000 divided into 800,000 ordinary shares of RM1.00 each, of which 51% of PC Global is owned by MESB and the balance of the shares are held by Mr Lim Chee Cheng (48.9999%) and Mr Koh Keng Keat (0.0001%).

The Board of Directors of PC Global comprised Mr Teoh Hwa Peng, Mr Ng Chee Leong and Mr Lim Chee Cheng.

Upon completion of the Proposed Disposal, PC Global shall cease to be a subsidiary of MESB.

The consideration was arrived at on a “willing buyer-willing seller” basis after taking into account the following factors:-

(i)      The unaudited shareholders’ fund of PC Global as at 31 March 2015 was RM271,823.

(ii)     Based on MESB Berhad’s proportion of shareholders’ fund value in PC Global.

The Proposed Disposal is not expected to have any material effect on the earnings per share, net assets, gearing, share capital and substantial shareholders’ shareholding of the Company and Group.

None of the Directors, major shareholders or persons connected to the Directors and/or major shareholders of the Company has any interest, direct or indirect, in the Proposed Disposal.

Having considered all aspects of the Proposed Disposal, the Board of Directors is of the opinion that the transaction is in the best interest of the Company.

This announcement is dated 1 July 2015.