Rationale and Benefit. The Placee, who had introduced the Proposed Acquisition to the Company, is subscribing for the Subscription Shares to express her support for the Company, as well as for the purposes of personal investment. As mentioned in paragraph 6.2 above, the Company intends to use up to 70% of the Share Placement Net Proceeds for the Group’s growth and expansion (including but not limited to the Proposed Acquisition) and the balance for working capital.
Rationale and Benefit. The Company is of the view that the Assignment of SHDB's rights and benefits (but not obligations) under the Crane Sub-Contract in favour of SHCL is beneficial to the Group as it enables SHCL to take legal action against the Crane Specialist for breaches under the Crane Sub-Contract directly, which is expected to give SHCL certain strategic advantages in the legal proceedings. The settlement with SHDB is also beneficial to the Group as it resolves all outstanding issues and claims in relation to the Project as between SHCL and SHDB in a balanced and equitable manner, and obviates the need for the Company to expend costly resources on the resolution of the same. The Settlement Agreement and Settlement Amount were negotiated between SHCL and SHDB at arms' length, through their respective legal counsel, having regard to, inter alia, the outstanding variation orders issued by SHDB to SHCL for additional works relating to the Project which were undertaken by SHDB at SHCL's request and which have been duly assessed by SHCL's appointed independent third party consultant, and the liquidated damages (builder's works) claims that SHCL has against SHDB.
Rationale and Benefit. The strategic partnership between the Company and Stirling Fort Asia marks the start of a long-term alliance as well as to enhance Shareholders’ value in the long- term via recurring revenue stream from management fees and performance fees of the investment fund products under Stirling Fort Asia.
Rationale and Benefit. The JVA is in line with OCR’s strategy to grow and diversify its business operations to turn profitable with sustainable growth as well as to balance its income stream from non-traditional sources so as to lessen any future negative industry impact to its traditional business industry. OCR views the JVA as an opportunity to strengthen its financial earnings via its future development on the Land. Currently, OCR Group’s businesses are very much dependent on global demand trends and economic outlook and OCR sees the joint venture as an opportunity to balance out the over reliance on this as the construction and property development industry in Malaysia is consistently seen to be robust due to the investment preference of locals and even certain foreigners in preferring local real estate investments.
