Investment risk. The Proposed Acquisition will enable YTL Corp and its subsidiaries (“YTL Corp Group”) to consolidate LMB’s earnings as its subsidiary company and is also expected to enhance the position of YTL Corp Group in the cement industry. Nonetheless, there can be no assurance that the anticipated benefits from the Proposed Acquisition will be realised and the duration required for YTL Corp to recoup its investment could be longer than anticipated. Nevertheless, the Board has considered the potential risks and benefits associated with the Proposed Acquisition and believes that the Proposed Acquisition will augur well for the YTL Corp Group, after taking into consideration, among others, the future earnings potential and prospects of the LMB Group as set out in Section 4 of this Announcement. The Proposals will not have any effect on the share capital and shareholdings of the substantial shareholders of YTL Corp as the Purchase Consideration and the consideration for the Proposed MO will be satisfied entirely in cash.
