The Board of LPI wishes to inform that LPI had on 30 April 2015 disposed of 1,113,900 ordinary shares of RM1.00 each in PBB (PBB Shares(s)), a public company listed on Main Market of Bursa Malaysia Securities Berhad (Bursa), representing 0.03% of the total issued and paid-up share capital of PBB (excluding a total of 20,644,304 PBB Shares bought-back by PBB and retained as treasury shares) via open market for a cash consideration of RM22.0 million or RM19.7415 per PBB Share (the Disposal).
LPI’s shareholding in PBB after the Disposal is 56,130,604 PBB Shares, representing 1.45% of the total issued and paid-up capital in PBB (excluding a total of 20,644,304 PBB Shares bought-back by PBB and retained as treasury shares).
The rationale of the Disposal is to realise tax-exempt capital gains and to support business growth. The sale proceeds will be placed into fixed deposit to generate interest income.
The net profit attributable to the Disposal is RM0.6 million and net assets of the Disposal is RM22.0 million.
The original cost of investment of LPI in PBB Shares is RM6.6 million since year 1999.
The Disposal is expected to result in a gain of approximately RM15.3 million which translates to an increase in earnings per share of approximately 5 sen per share to the LPI’s Group for the financial year ending 31 December 2015.
The Disposal does not have any effect on the share capital and substantial shareholders’ shareholdings of LPI. It is also not expected to have any effect on the net assets per share and gearing of LPI for the financial year ending 31 December 2015.
None of the directors, major shareholders and/ or persons connected with the directors and major shareholders of LPI have any interest, direct or indirect, in the Disposal.
The Board of LPI, after having considered all aspects of the Disposal, is of the opinion that the Disposal is in the best interest of LPI.
The highest percentage ratio applicable to the Disposal pursuant to paragraph 10.02(g) of Bursa MMLR is 1.3%, and the aggregate percentage ratio applicable to PBB Shares disposed from 27 October 2014 to 29 October 2014 and 30 April 2015 is 5.9%.
This announcement is dated 30 April 2015.