Pursuant to Paragraph 9.19(23) of the Bursa Malaysia Securities Berhad Main Market Listing Requirements, the Board of Directors of BHS Industries Berhad (“BHS” or “Company”) wishes to announce that the Company had on 25 September 2017 acquired and subscribed in total seventy (70) ordinary shares, representing 70% equity interest in Nextgreen (Sarawak) Sdn. Bhd. (“NSSB”), a company incorporated in Malaysia, for a total cash consideration of Ringgit Malaysia Seventy (RM70.00) only (“Acquisition”), detailed as follows:-

The remaining balance of 30% equity interest (i.e. 30 ordinary shares) in NSSB was subscribed by Excel Palm Sdn. Bhd.

NSSB was incorporated on 27 July 2017 and is currently dormant. The intended business activities of NSSB are manufacturing, trading and selling of pulp, paper and its related products and development of Integrated Green Technology Park.

FINANCIAL EFFECTS OF THE ACQUISITION

The Acquisition is not expected to have any financial effects on the Company for the financial year ending 30 June 2018  in terms of earnings per share, net assets per share, and gearing of the Company.

The Acquisition will not have any effect on the issued share capital and substantial shareholders’ shareholding in the Company.

INTERESTS OF DIRECTORS, MAJOR SHAREHOLDERS AND/OR PERSONS CONNECTED TO THEM

Dato’ Lim Thiam Huat, the Managing Director and substantial shareholder of the Company  deemed interested in the acquisition of one (1) ordinary share in NSSB by BHS from Dato’ Lim Thiam Huat.

Save for the foregoing, none of the other Directors, major shareholders and/or persons connected to them have any interest, whether direct or indirect, in the Acquisition.

This announcement is dated 25 September 2017.