We refer to the letter from Bursa Malaysia Securities Berhad (“Bursa”) dated 11 July 2014 titled Unusual Market Activity and after making due enquiry with the directors, major shareholders and other relevant persons, our response to the queries raised are as follows:

1. The Board of Directors and major shareholders of the Company wish to confirm that there is no corporate development relating to the Group’s business and affairs that have not been previously announced that may account for the trading activity including those in the stage of negotiation and discussion.

However, the Board wishes to refer to the Circular To Shareholders dated 3 July 2014 in which the Company would be able to obtain RM9 million if the shareholders approved the Proposed Disposals as set out in the said Circular.  The proceeds arising from the Proposed Disposals have been earmarked to part or to finance potential acquisition/investments in businesses when the opportunity arises for future business expansion.

2. The Board of Directors and major shareholders are not aware of any rumour or report concerning the business and affairs of the Group that may account for the trading activities.
 
3. There have been recent changes in the substantial shareholders of the Company.  The Board is of the view that this may have encouraged the trading activities of the Company which give rise to the movement in the share prices.

4. The Board of Directors confirms that the Company is in compliance with the Bursa Securities LR, in particular Paragraph 9.03 of the Bursa Securities LR on immediate disclosure obligations.