On behalf of the Board of Directors of BHS, RHB Investment Bank Berhad wishes to announce that BHS is proposing to undertake the following:

(i)      proposed diversification of the existing core businesses of BHS and its subsidiaries (“BHS Group”) to include the utilisation and sub-licensing of paper pulp making technology, manufacturing of renewable paper pulp products generated from empty fruit bunches using the Pre-conditioning Refiner Chemical Recycled Bleached Mechanised Pulp Technology, and other related activities (“Proposed Diversification”);

(ii)      proposed renounceable rights issue of 106,666,666 new ordinary shares of RM0.25 each in BHS (“BHS Share(s)”) (“Rights Share(s)”) on the basis of one (1) Rights Share for every three (3) existing BHS Shares held on an entitlement date to be determined later, together with 213,333,332 free detachable warrants (“Warrant(s)”) on the basis of two (2) Warrants for every one (1) Rights Share subscribed (“Proposed Rights Issue with Warrants”);

(iii)     proposed establishment of an employees’ share option scheme of up to ten percent (10%) of the prevailing issued and paid-up ordinary share capital of BHS (excluding treasury shares) for the eligible directors and employees of BHS Group to be implemented after the completion of the Proposed Rights Issue with Warrants (“Proposed ESOS”); and

(iv)     proposed increase in the authorised share capital of BHS from RM100,000,000 comprising of 400,000,000 BHS Shares to RM250,000,000 comprising 1,000,000,000 BHS Shares (“Proposed Increase in Authorised Share Capital”).

Further details of the Proposals as attached.

This announcement is dated 29 April 2015.