News

Change of interest in CapFin MR1 Sdn Bhd

The Board of Directors of CapitaLand Limited (CapitaLand) wishes to announce that CapitaLand Financial Investments Pte Ltd (CFIPL), and Kencana Capital Sdn Bhd (Kencana Capital), have today agreed to subscribe for 1,998 and 8,000 new ordinary shares of Ringgit Malaysia (RM)1 each at an issue price of RM1 respectively, and 148 and 592 new preference shares of RM1 each at an issue price of RM1,000 respectively, in the share capital of CapFin MR1 Sdn Bhd (formerly known as Bond Light Options Sdn Bhd) (CapFin). CFIPL and Kencana Capital will pay in cash the total consideration of RM149,998 and RM600,000 respectively for the said subscriptions in full on 8 May 2003 (or such other date as may be agreed between the parties). CFIPL is an indirect wholly-owned subsidiary of CapitaLand while Kencana Capital is an unrelated party to CapitaLand.

CFL Capital Management Sdn Bhd (CFLCM), another indirect wholly-owned subsidiary of CapitaLand, currently holds the entire 100% share capital of CapFin, comprising 2 ordinary shares of RM1 each. CFLCM will on the same day (8 May 2003 (or such other date as may be agreed between the parties)) transfer the said 2 ordinary shares to CFIPL for a total cash consideration of RM2.

CapFin, a private limited company incorporated in Malaysia, has not commenced operations. Its principal activities will be investments in real estate companies and investments in property developments in Malaysia. Prior to the issue of the aforesaid new shares, CapFins book value was RM2 represented by 2 ordinary shares of RM1 each. With the aforesaid subscriptions by CFIPL and Kencana Capital, CapFins issued and paid-up share capital will increase from RM2 comprising 2 ordinary shares of RM1 each to RM750,000 comprising 10,000 ordinary shares of RM1 each and 740 preference shares of RM1 each issued at a premium of RM999 each.

Following the above transactions, CapitaLands effective interest in CapFin will change from 100% to 20%, to be held through CFIPL, instead of CFLCM. This arrangement means CFIPL will hold only 20% of the total issued share capital of CapFin. CFIPL and Kencana Capital have, pursuant to a shareholders agreement entered into today between the parties and CapFin, agreed that CFIPL retains control of the composition of the board of directors of CapFin. As such, CapFin will remain an indirect subsidiary of CapitaLand.

The above transactions are not expected to have any material impact on the net tangible assets or earnings per share of the CapitaLand Group for the financial year ending 31 December 2003.

None of the Directors or controlling shareholders of CapitaLand has any interest, direct or indirect, in the above transactions.