Guan Chong Bhd : Guan Chong Berhad ("GCB" or "the Company") Acquisition of the remaining 51% equity interest in Carlyle Cocoa Co., LCC ("Carlyle") for a total purchase consideration of USD3,600,000 ("Acquisition")

Submitting Merchant Bank	:	N/A
Company Name	:	GUAN CHONG BERHAD
Stock Name	:	GCB
Date Announced	:	04/01/2013

Type	:	Reply to query
Reply to Bursa Malaysia's Query Letter - Reference ID	:	TE-130103-50278
Subject	:	Guan Chong Berhad ("GCB" or "the Company") Acquisition of the remaining 51% equity interest in Carlyle Cocoa Co., LCC ("Carlyle") for a total purchase consideration of USD3,600,000 ("Acquisition")
Description	:	All defined terms used in this announcement, unless the context otherwise states, shall bear the same meaning as those defined in the announcement and reply to query dated 2 January 2013 in relation to the Acquisition. Further to the Company's announcement made on 2 January 2013 in relation to the Acquisition ("Announcement"), the Company furnished herewith the following additional information for the public release: 1) As mentioned in item 4 of the Announcement, the net assets of Carlyle as at 31 October 2012 are unaudited. Hence, the so called "reviewed NA" of Carlyle in item 5.2 of the Announcement is referred to the "unaudited NA". However, the reviewed NA of Carlyle should be USD2,142,411 instead of USD3,441,404 as stated in the Announcement. The Purchase Consideration is derived from a willing buyer willing seller basis after taking into consideration the reviewed NA of Carlyle as at 31 October 2012, the prospects and earning potentials of Carlyle with a premium of 229%. It represents a price earnings multiple ("PE") of approximately 7 times calculated based on the unaudited accounts as at 31 October 2012 of Carlyle. 2) The earnings potential of Carlyle is expected to be positive due to its close proximity to one of the major export markets, USA for cocoa derived food ingredients. Premised on the PE multiple and 5-year historical profit records achieved by Carlyle, the Board of GCB is of the opinion that Carlyle is able to contribute positively to the performance of the GCB Group as a whole. This announcement is dated 4 January 2013.
Query Letter content	:	We refer to the Company's announcement dated 2 January 2013 in respect of the aforesaid matter. In this connection, kindly furnish Bursa Malaysia Securities Berhad ("Bursa Securities") with the following additional information for public release:- 1. Further clarification and tabulation on the "reviewed NA" of Carlyle as at 31 October 2012 and justification on the Purchase Consideration based on the "reviewed NA". 2. Further elaboration on the earnings potential of Carlyle to arrive at the Purchase Consideration. Please furnish Bursa Securities with your reply within one (1) market day from the date hereof. Yours faithfully HENG TECK HENG Head, Issuers Listing Division Regulation IJ/TEK c.c:- General Manager and Head, Market Surveillance, Securities Commission (via fax)
Announcement Details/Table Section :

© 2013, Bursa Malaysia Berhad. All Rights Reserved.