General Announcement
Reference No
O&-041019-62839
Submitting Merchant Bank
:
K & N KENANGA BHD
Company Name
:
ASIAEP BHD
(MESDAQ Market)
Stock Name
:
ASIAEP
Date Announced
:
19/10/2004
Type
:
Announcement
Subject
:
ASIAEP BERHAD ("asiaEP" or the "Company")
Revision to the utilization of listing proceeds
Contents :
1. Introduction
K&N Kenanga Bhd ("
Kenanga
"), on behalf the Company, wishes to announce that the Company had on 5 October 2004 made an application to Bursa Malaysia Securities Berhad ("
Bursa Securities
") to revise the utilization of the Company's listing proceeds pursuant to its public issue offer of 60,000,000 asiaEP ordinary shares of RM0.10 each at an issue price of RM0.30 each as set out in the Company's prospectus dated 26 December 2003. Bursa Securities had, vide its letter dated 18 October 2004, taken note of the proposed revision to the utilization of listing proceeds.
2. Proposed revision to utilization of listing proceeds
The board of directors of the Company (the
"Directors"
) wish to revise the utilization of the Company's listing proceeds by expanding the list of foreign countries earmarked for investment purposes from Singapore, India, Thailand, Indonesia and Philippines to also include the People's Republic of China (
"PRC"
) as well as any other countries within the Asia Pacific region where opportunities may arise which the Directors consider beneficial to the Company. Additionally, the Directors also wish to revise the allocation of the listing proceeds for investment in foreign countries by grouping the entire amount. The Directors, however, do not foresee any changes to the current expected timeframe for the utilization of the RM5,000,000 listing proceeds for investments in foreign countries of within 24 months from the Company's listing date, being 16 January 2004.
As a result of the above, the proposed revision to the utilization of the Company's listing proceeds for investments in foreign countries is proposed to be revised as follows:-
"Proposed investment in the form of capital investment and working capital amounting to RM5,000,000 from the listing proceeds in Singapore, India, Thailand, Indonesia, Philippines, the PRC and any other countries within the Asia Pacific region where opportunities may arise which the Directors consider beneficial to the Company."
3. Rationale for the revision
The Directors are of the opinion that the PRC's Internet economy as well as e-commerce spending within the country will grow in tandem with the PRC's economic growth. In addition, in the course of the Company's business, investment opportunities may also arise in countries within the Asia Pacific region that were not previously identified as target countries for investment and expansion. In the event that such investment opportunities should arise, which in the opinion of the Directors are beneficial to the Company, the Directors may not be able to take advantage of such investment opportunities without the utilization of the listing proceeds. The Directors also wish to revise the allocation of the listing proceeds earmarked for investment in foreign countries by grouping them together, so as to achieve better flexibility in structuring and implementing any investment opportunities in foreign countries instead of being restricted to a pre-determined amount for capital investment and working capital purposes.
This announcement is dated 19 October 2004.