Certificate Of investment to Establish Tcie Vietnam Pte Ltd And To Implement Investment Project
BackDec 15, 2009
| Type | Reply to query |
| Reply to Bursa Malaysia's Query Letter - Reference ID | ML-091214-37367 |
| Subject | CERTIFICATE OF INVESTMENT TO ESTABLISH TCIE VIETNAM PTE LTD AND TO IMPLEMENT INVESTMENT PROJECT |
| Contents | Further to the Company’s announcement dated 11 December 2009 in respect of the above and in reply to the letter dated 14 December 2009 from Bursa Malaysia Berhad, we wish to furnish the following additional information: 1. Details of the Land The Land is located at Lot U8-U11, Road No.5B, Expanded Hoa Khanh Industrial Zone, Lien Chieu District, Danang City, Vietnam measuring total land area of 129,500 m2. Following the issuance of the Investment Certificate, TCIE Vietnam Pte Ltd will sign a land sublease contract with Saigon-Danang Investment Corporation for the lease of the Land upon the following salient terms and conditions: Sub-lease duration : From the date of the Investment Certificate to 25 March 2054 Unit price : USD23.50 per m2 over the sub-lease duration Total land rental : USD3,043,250 Terms of payment : (i) 40% - Within 20 days from date of the Investment Certificate. (ii) 60% - Within 3 years from the date of the land sublease contract (20% before 15 December of each year). The total land rental of USD3,043,250 will be financed by the Group through internally generated funds. Expanded Hoa Khanh Industrial Zone (“EHK Industrial Zone”) is an industrial zone of multi-industry established by Saigon-Danang Investment Corporation, an enterprise belonging to the provincial government of Danang City, Vietnam, covering total land area of 212.12 hectres with current occupancy rate of 9.4%. It is 20 km from Tien Sa seaport and 10 km from Danang city centre. 2. Basis and justification in arriving at USD3.04 million The total land rental of USD3.04 million (USD23.50 per m2) was arrived at on a willing-buyer willing seller basis through a series of negotiation between the parties. 3. Whether any valuation was carried out on the Land No. At present, the standard land rental for EHK Industrial Zone quoted by Saigon-Danang Investment Corporation is USD30 per m2 over the whole of the remaining duration of lease (until 2054). 4. Highest percentage ratio applicable to the acquisition of the Land The highest percentage ratio applicable to the leasing of the Land pursuant to Paragraph 10.02(g) of the Listing Requirements is 0.73% based on the audited financial statements of the Group for the financial year ended 31 December 2008. This announcement is dated 15 December 2009. |
| Query Letter Content | We refer to your announcement dated 11 December 2009 in respect of the above matter. In this connection, kindly furnish Bursa Malaysia Securities Berhad ("Bursa Securities") with the following additional information for public release: 1. Details of the Land; 2. Basis and justification in arriving at USD3.04 million; 3. Whether any valuation was carried out on the Land. If yes, to state the name of independent valuer, date and method of valuation and the market value appraised; and 4. Highest percentage ratio applicable to the acquisition of Land. Please furnish Bursa Securities with your reply within one (1) market day from the date hereof. Yours faithfully, HENG TECK HENG Senior Manager, Issuers Listing Division Regulation HTH/ML c.c. Head, Market Surveillance, Securities Commission (via fax) |
Announcement Info
| Company Name | TAN CHONG MOTOR HOLDINGS BERHAD |
| Stock Name | TCHONG |
| Date Announced | 15 Dec 2009 |
| Category | General Announcement |
| Reference No | TCM-091215-27609 |