The Board of Directors of YTL e-Solutions Berhad (the Company/YTLE) is pleased to announce that the Company has on 22 December 2006 entered into a Subscription cum Shareholders’ Agreement (the Agreement) with the Various Parties and Bizsurf (M) Sdn Bhd (Bizsurf) to co-operate in respect of the operations, management and development of the business of providing broadband internet access and other businesses and activities Bizsurf decides to engage in.
Bizsurf was incorporated on 23 August 1995 and presently has an authorized share capital of RM1,000,000.00 divided into 10,000,000 ordinary shares of RM0.10 each of which 6,500,000 ordinary shares of RM0.10 have been issued at par and fully paid-up.
Under the terms of the Agreement, the authorized share capital of Bizsurf will be increased to RM5,000,000.00 to be divided into 50,000,000 ordinary shares of RM0.10 each. The issued and paid-up share capital of Bizsurf will also be increased to 27,000,000 ordinary shares of RM0.10 each via share capital restructuring exercises which will entail YTLE subscribing for 13,500,000 ordinary shares representing 50% of the issued and paid-up share capital of Bizsurf at par value per share for a cash consideration of RM1,350,000.00 only (the Subscription). As a result of the Subscription, Bizsurf will become an associated company of YTLE. The Subscription will be funded from internally generated funds.
Bizsurf is a licensed service provider currently principally engaged in the business of providing broadband internet access and other value added services. Further, Bizsurf is one of the seventeen licensed service providers who have applied for and are being considered for the 2.3GHz spectrum band for WiMAX deployment.
As the business of Bizsurf is synergistic to YTLE’s business activities, the investment into Bizsurf will broaden the operating base and earnings potential of the Company.
The Subscription is not subject to the approval of the shareholders nor any government authorities.
The Subscription is not expected to have any material effect on the earnings and net assets of the YTLE Group for the current financial year. None of the Directors or substantial shareholders of the Company or persons connected with them has any interest, direct or indirect in the Subscription.