Announcement Details/Table Section :


BORNEO AQUA HARVEST BERHAD("BAHVEST" OR "COMPANY")

The Board of Directors of BAHVEST ("Board") is pleased to announce that the Company has on 24 January 2014 acquired the entire issued and paid-up capital of Plentiful Earnings Sdn. Bhd. ("PESB") of RM100,000 divided into 100,000 Ordinary Shares of RM1.00 each, for a cash consideration of RM100,000 ("Acquisition") from Mr. Abdul Arif Bin Jirang and Ms. Ho Soung Ket, through its wholly-owned subsidiary, Plentiful Harvest Sdn. Bhd. Pursuant to the Acquisition, PESB will be an indirect wholly-owned subsidiary of BAHVEST.

The consideration will be funded byinternally generated fund.

Information on PESB

PESB was incorporated in Malaysia on 19 May 2006. The authorised capital of PESB is RM100,000 divided into 100,000 Ordinary Shares of RM1.00 each . As at the date of this announcement, PESB has an issued and paid-up capital of RM100,000.

PESB's principal activities are to carry on business in marine aquaculture, operation of fish rearing and marine aquaculture related activities.

Rationales

PESB has been granted a parcel of sea area measuring approximately of 6.0 hectares at Silam, Lahad Datu, Sabah, under Temporary Occupancy Lease ("TOL") for the purposes of Aquaculture on 17 May 2012 by the Lands and Surveys Department, Kota Kinabalu, Sabah.

With the acquisition of PESB, Bahvest would be able to expand its rearing activities for the Group and also to diversify the Group's rearing risks by expanding its current rearing sites to the new site.

PESB has also been granted approval on the 29 September 2011 by the Malaysia Finance Minister pursuant to the Income Tax Act, 1967, to carry out sea cages fish farming project ("Project"). Under the approval, PESB is granted exemption of income tax at 100% on its statutory income for a period of 10 years commencing on the first year PESB having its first statutory income from the Project.

Financial Effect

The Acquisition does not have any effect on the issued and paid-up share capital and major shareholdings structure of BAHVEST and is not expected to have a material effect on the net assets and earnings of the BAHVEST Group for the financial year ending 31 March 2014.

Percentage Ratio

The highest percentage ratio applicable to the Acquisition pursuant to paragraph 10.02(g) of the ACE Market Listing Requirement is 0.08 %.

Approval Required

The Acquisition does not require any approval of the shareholders of BAHVEST.

Liabilities to be assumed after the Investment

No liabilities will be assumed by the BAHVEST Group arising from the Acquisition.

Directors' and Major Shareholders' Interests

None of the Directors or major shareholders of the Company and / or persons connected to them, as defined under the Bursa Malaysia Securities Berhad ACE Market Listing Requirements, has any interest, whether direct or indirect, in the Acquisition.

Directors' Statement

Having considered all aspects of the Acquisition, the Board is of opinion that the Acquisition is in the best interest of BAHVEST Group.

Estimated Time Frame For Completion

The Acquisition is expected to be completed by the first quarter of 2014.

This announcement is dated 24 January 2014.

distributed by