We refer to your letter dated 15 April 2011 and as requested please find our response:
1. We have a total of 2,177,334 shares or 0.94% of TDM Berhad for which 830,640 or 0.36% were sold. Following the disposal we will hold 1,306,694 shares or 0.58% interest in TDM Berhad.
2. As at the date of disposal of the TDM Berhad shares, Terengganu Incorporated Sdn Bhd directly holds 79,404,881 shares or 59.02% interest in our Company.The Company has no indirect holding.
3. The gain on disposal is RM557,194 and was arrived at book value of the shares (RM1,320,718) less cost of the shares RM763,524.
4. The TDM Berhad shares were acquired in 2004.
5. The disposal proceeds would be applied towards working capital such as follows:
a. Payment of premium to Jabatan Perhutanan Negeri Terengganu of RM1,375,000 in May 2011; and
b. Part finance the working capital requirement of subsidiary of RM1,033,356 for the months from June to December 2011.
6. Based on the latest audited financial statements of TDM Berhad, its net profit and net assets were RM55,947,000 and RM647,868,000 respective.
7. The directors deemed interested in the Disposal, being directors nominated by the major shareholders to the Board, are YBhg Datuk Zubir bin Embong, YB Dato' Haji Mazlan bin Ngah, En Mohamad bin Shahul Hameed and Mr Wong Shew Yong.
None of the directors have any direct or indirect interests in GPB.
These directors had abstained from expressing an opinion on the Disposal.
8. Save for Terengganu Incorporates Sdn Bhd and the interested directors mentioned above, none of the other directors, major shareholders and/or persons connected to the directors and major shareholders are interested in the Disposal.