Nov 19, 2015 - o Mohd Sharim bin Md Zain. (Board Member) ... positively to the results of the Group for the financial ye
HALEX HOLDINGS BERHAD (“HALEX” or “the Company”) - SUPPLY CONTRACT FOR RICE UNDER FOOD BANK PROJECT (REFERRED TO AS “SUPPLY CONTRACT”)
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INTRODUCTION 1.1
The Board of Directors of Halex Holdings Berhad (“HALEX” or “the Company”) wishes to announce that its trading subsidiary, Halex (M) Sdn Bhd (“HMSB”) has today accepted an offer from Koperasi Majlis Belia Felda Malaysia Berhad (“KMBFM”) to procure and package rice under the Food Bank Project launched by the Government of Malaysia known as Project Gedung Makanan Negara (“GMN Project”).
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The above contract is an expansion of the Company’s rice trading business following Halex’s recent proposed acquisition of a 70% equity interest in SL Aktif Sdn Bhd (“SLASB”) which has also received a Letter of Offer from KMBFM to procure and package rice under the GMN Project as announced on 11 November 2015.
DETAILS OF THE SUPPLY CONTRACT 2.1
Salient Terms of the Letter of Offer from KMBFM (a) The Letter of Offer from KMBFMB dated 19 November 2015 also acts as a Contract for Supply and Packaging for white rice (Kontrak Pembekalan dan Pembungkusan Beras Putih Jenis “Super Spesial Tempatan 5%” Untuk Projek Bank Makanan Dibawah Seliaan FELDA. (b) The estimated total contract value is up to RM184,000,000.00 or 80,000 metric ton of white rice per annum. (c) The contract value stated above is only an estimate and KMBFMB does not guarantee that the full amount will be purchased. The actual amount purchased will vary depending on the purchase order given from time-to-time. (d) The rice to be supplied must comply with the specifications given. (e) The contract tenure is for 2 years effective from 2015 to 2017. (f) The contract may be extended by 1 year from 2017 to 2018 subject to negotiation and mutual agreement. (g) A definitive contract is to be signed by KMBFMB and HMSB. The Letter of Acceptance shall form part of the Contract and shall be binding. (h) Until the Contract is signed, this Letter of Acceptance shall be deemed as a valid Contract.
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INFORMATION ON KMBFM KMBFMB was incorporated under the Cooperative Commission Malaysia on 27 January 2012. It has no issued or paid-up capital. The principal activities of KMBFM are as follows: o o o o
Management advisory services for events, ceremonies, production, training and education Agricultural activities including farming, animal breeding, aquaculture and biotechnological research To carry out retail businesses, e.g., supermarkets, petrol stations, and other retail businesses To carry out contracting activities and participate in awards from government and private sector
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The Board composition of KMBFMB comprises as follows: o o o o o o o o o o o o
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YB Anuar bin Abd Manap Ahmad Saari bin Abd Samat Mohd Zuraidi bin Mohamed Muszaide bin Makmur Mohd Syumaimi bin Ramli Mohd Insaini bin Zakaria Mohd Sharim bin Md Zain Ku Zaharin bin Ku Mansor Abd Razak bin Poajan Mohd Nasharuddin bin Mat Nasir Mohd Amir Murshidi bin Samsuddin Muhammad Noraffendy bin Mohd Salleh
(Chairman) (Deputy Chairman) (Secretary) (Treasurer) (Board Member) (Board Member) (Board Member) (Board Member) (Board Member) (Board Member) (Board Member) (Board Member)
INFORMATION ON HMSB HMSB was incorporated under the Companies Act, 1965 as a private limited company and is a wholly-owned subsidiary of Halex. It has a paid up capital of RM4,800,000.00 comprising 4,800,000 ordinary shares of RM1.00 each.
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FINANCIAL IMPACT The Supply Contract is not expected to have a significant impact on the results of the Group for the financial year ending 31 December 2015 but is expected to contribute positively to the results of the Group for the financial year ending 31 December 2016.
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RESOURCES REQUIRED (EXPERTISE) The Group has been involved in the trading and distribution business for many years involving consumer goods and has a network of about 1,000 dealers and retailers for its consumer products. The rice trading business is an extension of the current trading and distribution business and will be managed by our current sales team who has the requisite expertise in this sector.
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DIRECTORS AND/OR MAJOR SHAREHOLDERS INTEREST AND PERSONS CONNECTED WITH THEM None of the Directors, major shareholders of HALEX and/or persons connected with them have any interest, whether direct or indirect in the Supply Contract.
This Announcement is dated 19 November 2015.
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