1. INTRODUCTION
The Board of Directors of Focus Point (“Board”) wishes to announce that the Company had on 15 September 2010 acquired ten (10) ordinary shares of RM1.00 each, representing the entire issued and paid-up share capital in Sound Point Hearing Solution Sdn Bhd (“Sound Point”), a company incorporated under the laws of Malaysia for a total consideration of RM10.00 (the “Acquisition”). The vendors of Sound Point are as follows:
| Vendor |
No. of shares acquired
|
Cash consideration
|
| Ms. Soon Yoke Keng |
9
|
RM9.00
|
| Mr. Yap Ken Sang |
1
|
RM1.00
|
| TOTAL |
10
|
RM10.00
|
2. DETAILS OF THE ACQUISITION
2.1 Background Information
Sound Point was incorporated in Malaysia on May 7th 2010 with an issued and paid-up share capital of RM10.00. Sound Point is currently a dormant company.
Upon completion of the Acquisition, Sound Point will become a wholly-owned subsidiary of Focus Point.
2.2. Basis at arriving at the Purchase Consideration and liabilities to be assumed
The purchase consideration was arrived at on a willing buyer-willing seller basis.
There is no liability to be assumed by Focus Point in connection to the Acquisition.
3. RATIONALE
While Sound Point is currently a dormant company, it is intended that Sound Point will eventually be principally involved in the trading of hearing aid solutions and related accessories. Sound Point will provide a new income stream to the Group upon the commencement of its principal business.
4. DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS
None of the Directors, major shareholders of the Company and/or persons connected with them has any interest, direct and/or indirect in the Acquisition.
5. FINANCIAL EFFECTS
The Acquisition is not expected to have any material effect on the earnings and net assets of the Company for the financial year ending 31 December 2010. Nevertheless, Sound Point is expected to provide the Group with a new income stream upon the commencement of its principal business, while capitalising on the Group’s market reach and cost savings as a result of economies of scale.
6. DIRECTORS’ STATEMENT
The Board of Directors of Focus Point is of the opinion that the Acquisition is in the best interest of the Company.
This announcement is dated 15 September 2010.
