News

1.        INTRODUCTION 

Pursuant to Rule 9.19(25) of the ACE Market Listing Requirements of Bursa Malaysia Securities Berhad, the Board of Directors of Focus Point wishes to announce that its wholly-owned subsidiary, Multiple Reward Sdn Bhd (“MRSB”) had, on 3 May 2016, entered into a Share Sale Agreement (“SSA”) with the following purchasers (collectively referred to as “Purchasers”), for the disposal of MRSB’s entire investment in Original Reward Sdn Bhd (“ORSB”) comprising 51,000 ordinary shares of RM1.00 each (“ORSB Shares”), representing 51% equity shares in ORSB to the Purchasers, each holds 24,500 Shares, representing 24.5% of ORSB Shares, at a total consideration of RM1.00 (“Disposal Consideration”) (“Disposal of Shares”):-

Following the Disposal of Shares, ORSB ceased to be the subsidiary of MRSB.

In conjunction with the Disposal of Shares, MRSB shall also dispose the trademark, namely "Inaho Sushi", currently operating by ORSB to ORSB for a total consideration of RM1.00 on 1 June 2016.

2.        DETAILS OF ORSB 

ORSB was incorporated in Malaysia on 13 May 2013 under the Companies Act, 1965 as a private limited company. The principal activity of ORSB is carrying on the business operations of food and beverages and it currently operates a Japanese food restaurant in the Klang Valley.

The present authorised share capital and the issued and paid up share capital of ORSB are RM100,000.00 divided into 100,000 ordinary shares of RM1.00 each.  The shareholdings of ORSB are stated in Section 1 of this announcement.

3.        BASIS OF ARRIVING AT AND JUSTIFICATION FOR THE DISPOSAL CONSIDERATION

The net liabilities position of ORSB based on the audited financial statements as at 31 December 2015 and management account as at 31 March 2016 were  RM220,294 and RM257,218 respectively. The consideration is arrived at after considering such financial position of ORSB and non-profitability of ORSB since 2013.

4.        RATIONALE FOR THE DISPOSAL OF SHARES

Rationale for the Disposal of Shares are as follows:-

-       The restaurant business is not a core activity under the food and beverage segment;

-       The restaurant business has not been profitable under ORSB; and

-       The management can re-align its business objective to concentrate only on the bakery business under the brandname of “Komugi”.

5.        DIRECTORS AND MAJOR SHAREHOLDERS’ INTERESTS

None of the Directors and/or major shareholders of the Company and/or persons connected with them has any interest, direct and/or indirect in the Disposal of Shares.

6.        DIRECTORS’ STATEMENT

The Board of Directors of Focus Point is of the opinion that the Disposal of Shares is in the best interest of the Focus Point Group.

This announcement is dated 3 May 2016.