Acquisition of Property in Indonesia by the Subsidiary, Pt. Yung Shin Pharmaceutical Indonesia

ACQUISITION OF PROPERTY IN INDONESIA BY THE SUBSIDIARY, PT. YUNG SHIN PHARMACEUTICAL INDONESIA

1.INTRODUCTION

Pursuant to paragraph 10.05 of the Listing Requirements of Bursa Malaysia Securities Berhad for Main Market, the Board of Directors of Y.S.P. Southeast Asia Holding Bhd. (“YSPSAH” or “the Company”) wishes to announce that PT. Yung Shin Pharmaceutical Indonesia (“PTYSPI”), a subsidiary of YSPSAH duly incorporated in Indonesia, hadon 11September 2015entered into a Sale & Purchase Agreement with an Indonesian, Mr. Hengky Wijaya (“the Vendor”) for the acquisition of an office building as detailed in Section 2.2 below(“the Property”) for a total cash consideration of Indonesian Rupiah 14.5 billion (equivalent to RM4.379 million) (hereinafter referred to as “the Acquisition”).

2.INFORMATION ON THE ACQUISITION

2.1DETAILS OF VENDOR

Mr. Hengky Wijaya (Indonesian identity card number 3603281408530001) of Jalan Boelevard Palem Raya nomor 1825 Lippo Karawaci, Rukun Tetangga 006, Rukun Warga 008, Desa/Kelurahan Bencongan Indah, Kecamatan Kelapa Dua, Kabupaten Tangerang is an Indonesian and the owner of the Property.

2.2DETAILS OF THE PROPERTY

Description / : / A 4-storey office building with a sublevel basement erected on a piece of leaseholdland located at Perumahan Foresta Business Loft Type C nomor 31 at the address known as Foresta Business Loft 1 No. 31, Jalan BSD Raya Utama, BSD City, South Tangerang, Banten, Indonesia.
TotalLand Area / : / 190square metres (approx.)
TotalBuilding Area / : / 715.47square metres (approx.)
Age of Building / : / The building is a newly constructed office building.
Encumbrances / : / The Property is free from all liens and encumbrances, encompassing both physical and legal encumbrances.

2.3BASIS OF PURCHASE CONSIDERATION

The Company has engaged KJPP Winarta & Rekan (Registered Property Valuer No. 2.09.0077) of Gedung Bursa Efek Indonesia, Tower 2, Lantai 19 Suite 1903, Jl Jenderal Sudirman Kav 52-53, Jakarta 12190 Indonesia as valuer.

The valuer valued the Property at its market value which is defined by International Valuation Standards (IVS) and the Indonesian Valuation Standards (Standar Penilaian Indonesia) as “the estimated amount for which an asset or a liability should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion”.

The valuer has adopted Market Approach to arrive at the market value of the Property based on the type and nature of the property under valuation.

Based on the above, the valuer has inspected the Property on 3 September 2015and valued the Propertyas follow:-

Indicative Market Value / : / Indonesian Rupiah 14.7 billion

2.4SOURCE OF FUNDING

The Acquisition will be funded by internally generated funds (approximately 30% of the purchase price) and bank borrowings (approximately 70% of the purchase price).

2.5CONTINGENT LIABILITY

No contingent liability to be assumed by PTYSPI and YSPSAH arising from the Acquisition.

3.FINANCIAL EFFECTS

The Acquisition is not expected to have any material effect on the earnings per share, net assets per share, gearing, share capital and substantial shareholders’ shareholdings of YSPSAH for the financial year ending 31 December 2015.

4.HIGHEST PERCENTAGE RATIO

The highest percentage ratio pursuant to paragraph 10.02(g) of the Bursa Malaysia Securities Berhad Main Market Listing Requirements is 1.83%.

5.APPROVAL REQUIRED

The Acquisition is not subject to shareholders’ approval.

6.RATIONALE & RISK FACTORS

The Propertyis acquired for own use and the Board of Directors of YSPSAH is not aware of any specific risk/risk factors arising from the Acquisition other than the normal & market risks.

7.DIRECTORS’ AND SUBSTANTIAL SHAREHOLDERS INTERESTS

The Directors and major shareholders of YSPSAH and persons connected to the Directors and Major Shareholders do not have any interest, whether direct or indirect in the Acquisition.

8.STATEMENT BY DIRECTORS

The Board of Directors of YSPSAH is of the opinion that the Acquisition is in the best interests of YSPSAH.

9.ESTIMATED TIME FRAME FOR THE COMPLETION OF THE ACQUISITION

The Acquisition is expected to be completed by November 2015.

10.DOCUMENT FOR INSPECTION

The Sale and Purchase Agreement and Valuation Report are available for inspection at the registered office of the Company at Level 22, Menara LGB, No. 1 Jalan Wan Kadir, Taman Tun Dr. Ismail, 60000 Kuala Lumpur from Monday to Friday (except public holidays) during normal business hours for a period of three months from the date of this announcement.

This announcement is dated30September 2015.

(REMARKS: The Company was duly notified by the Solicitor in Indonesia on the Sale & Purchase Agreement today.)