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Kuala Lumpur Kepong (KLK)

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Tuesday 23 November, 2004

Kuala Lumpur Kepong

Share BuyBack etc.

Kuala Lumpur Kepong Berhad
23 November 2004


* Proposed Authority to Buy Back its own Shares by the Company;
* Proposed Shareholders' Mandate for recurrent Related Party Transactions of a
Revenue or Trading Nature
* Proposed Ex-Gratia Payments to Retiring Senior Directors
('hereinafter referred to as 'Proposals')

Introduction

Kuala Lumpur Kepong Berhad ('KLK') wishes to announce that it will be seeking
shareholders' approvals for the following proposals at its Extraordinary General
Meeting ('EGM') to be convened on 23 February 2005, the same day as its Annual
General Meeting ('AGM'):

Proposed Authority to Buy Back its own Shares by the Company ('Proposed Share
Buy Back')
Proposed Shareholders' Mandate for recurrent Related Party Transactions of a
Revenue or Trading Nature ('Proposed Shareholders' Mandate')
Proposed Ex-Gratia Payments to Retiring Senior Directors
Proposed Share Buy Back
The mandate granted at the last EGM of the Company held on 18 February 2004, by
its shareholders to the Directors for the Company to buy back KLK's own Shares,
will expire at the forthcoming AGM of KLK. The Board has proposed that a fresh
mandate be sought from the shareholders for the Company to buy back its own
Shares up to an amount not exceeding 10% of the Issued and Paid-up Share Capital
(excluding treasury shares) of KLK, or 70.9 million KLK Shares.

Proposed Shareholders' Mandate For Recurrent Related Party Transactions

At the EGM held on 18 February 2004, the shareholders of KLK had also granted a
mandate for KLK and/or its subsidiaries to enter into recurrent related party
transactions of a revenue or trading nature which are necessary for the Group's
day-to-day operations in the ordinary course of business, provided that such
transactions are made at arms' length, on normal commercial terms which are not
more favourable to the related parties than those generally available to the
public and are not to the detriment of the minority shareholders of the Company.
The said mandate will also expire at the forthcoming AGM of the Company.

Pursuant to Paragraph 10.09 of the Bursa Malaysia Securities Berhad ('Bursa
Securities') Listing Requirements and Bursa Securities Practice Note No. 12/
2001, the Board proposes that a fresh mandate be sought from the shareholders to
allow the KLK Group to enter into recurrent related party transactions of a
revenue or trading nature at the EGM to be held on the same day as the Company's
forthcoming AGM.

Proposed Ex-Gratia Payments to Retiring Senior Directors

The Board proposes to recommend to shareholders that ex-gratia payments of
RM400,000 each be made to Mr. Yeoh Chin Hin and Mr. Charles Letts respectively,
and RM150,000 to Maj-Gen (R) Dato' Seri Dr. Mahmood Sulaiman, all of whom are
retiring at the forthcoming AGM and will not seek re-appointment. These
ex-gratia payments are being proposed in recognition of their contributions and
long service on the KLK Board.

Mr. Yeoh Chin Hin and Mr. Charles Letts are founder Directors of KLK since the
Company was incorporated in 6 July 1973 and would have served the Board close to
32 years by 2005. Likewise, Maj-Gen (R) Dato' Seri Dr. Mahmood Sulaiman would
have been with the Board for 27 years since 1 July 1978.

These ex-gratia payments are subject to shareholders' approvals being obtained
at the Company's EGM to be held on 23 February 2005.

Circular to Shareholders

A Circular containing the details of the Proposals will be despatched to the
shareholders of KLK in due course.

LJC/ska




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