1. INTRODUCTION
The Board of Directors of Focus Point (“Board”) wishes to announce that its wholly-owned subsidiary, Focus Point Vision Care, had on 20 June 2011 completed the acquisition of the remaining 49% interest in Eye-Zed Sdn Bhd (Company No. 812085-D) (“Eye-Zed”) from Liong Ah Fong for a total cash consideration of RM97,086.21 (“Purchase Consideration”) (“Acquisition”). Consequently, Eye-Zed is a wholly-owned subsidiary of Focus Point Vision Care.
2. DETAILS OF THE ACQUISITION
2.1 Information on Eye-Zed
Eye-Zed was incorporated in Malaysia under the Companies Act, 1965 on 2 April 2008 as a private limited company and is principally involved in the business of operating professional eye care centres with an outlet located at Lot No. GL-11 & GL-12, Ground Floor, Shaw Centre Point, Jalan Raja Hassan, 41400 Klang, Selangor Darul Ehsan (“Shaw Centre Point Outlet”).
It has an authorised share capital of RM500,000.00 comprising 500,000 ordinary shares of RM1.00 each, of which RM300,000.00 has been issued and fully paid-up. Based on the latest audited accounts of Eye-Zed for the financial year ended 31 December 2010, it reported a net loss after tax of RM22,048 on the back of revenue of RM481,660. The latest management accounts of Eye-Zed for the 4-month financial period ended 30 April 2011 shows that it recorded a net loss after tax of RM10,695 on the back of revenue of RM111,620. The directors of Eye-Zed as at the date of this announcement are Dato’ Liaw Choon Liang and Liong Ah Fong whilst the shareholders of Eye-Zed as at the date of this announcement are as follows:
| Name |
No. of shares
|
%
|
| Focus Point Vision Care |
153,000
|
51.0
|
| Liong Ah Fong |
147,000
|
49.0
|
| Total |
300,000
|
100.0
|
2.2 Basis of arriving at the Purchase Consideration and liabilities to be assumed
The Purchase Consideration was arrived at on a willing buyer-willing seller basis and after taking into consideration the book value of the net assets based on the latest management accounts of Eye-Zed as at the financial period ended 30
April 2011.
There is no liability to be assumed by Focus Point Vision Care in connection to the Acquisition.
2.3 Source of funds
The Purchase Consideration was made via cash funded through internally generated funds.
3. RATIONALE FOR THE ACQUISITION
The Acquisition is consistent with Company’s expansion plan in Malaysia. The Company is confident in turning around the financial performance of Shaw Centre Point Outlet which eventually is expected to contribute positively to the earnings of Focus Point group moving forward.
4. DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS AND PERSONS CONNECTED TO DIRECTORS AND MAJOR SHAREHOLDERS
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.
This announcement is dated 20 June 2011.
