News

1. INTRODUCTION

FACB Industries Incorporated Berhad ("FACBI" or "the Company") wish to announce that KT Fittings Sdn Bhd ("KTF"), a wholly-owned subsidiary of the Company, is in the process of downsizing its operation and the subsidiary is expected to cease the production of stainless steel fittings in the financial year ending 2018 ("Proposed Cessation").

2. BACKGROUND INFORMATION ON KTF

KTF was incorporated in Malaysia on 10 November 2003 and principally engaged in the production and sale of stainless steel fittings. The existing paid up capital of KTF is RM23,500,000 with 23,500,000 ordinary shares issued. Referring to the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, KTF is not a major subsidiary of the Company.

3. RATIONALE FOR THE PROPOSED CESSATION

KTF has been incurring losses for the past three financial years (2015 to 2017) and its prospects continue to be challenging. It is not expected to turnaround in the foreseeable future.  Therefore, the Board has taken the decision to gradually cease its operation in order to minimise its effects to the Group. 

4. EFFECT OF THE PROPOSED CESSATION

a) Share Capital and Substantial Shareholders' Shareholding

The Proposed Cessation will not have any effect on the issed and paid-up share capital and substantial shareholders' shareholdings in the Company.

b) Net Assets and Gearing

The Proposed Cessation is not expected to have any material effect on the consolidated net assets per share and gearing of the Group for the financial year ending 30 June 2018.

c) Earnings and Earnings Per Share

The Proposed Cessation is not expected to have any material effect on the earnings and earnings per share of the Company for the financial year ending 30 June 2018.

5. DIRECTORS' AND MAJOR SHAREHOLDERS' INTEREST

None of the directors and major shareholders' of FACBI or persons connected with them has any interest, direct or indirect, in the Proposed Cessation.

6. APPROVALS

The Proposed Cessation is not subject to the approval of the shareholders or any regulatory authorities.

7. DIRECTORS' RECOMMENDATION

The Board of Directors of FACBI, after taking into consideration of all financial and other factors, is of the opinion that the Proposed Cessation is in the best interest of the Company.

This announcement is dated 22 November 2017.