Datasonic Group Berhad Annual Report 2020

3.3 The Operating Activities of the Investment Holding (“IH”) Segment The IH Segment is principally involved in investment holding and provision of management services for the companies within the Datasonic Group of companies. InFY20, total inter segment revenue for the IHSegment has increasedbyRM6.264million fromRM50.252 million to RM56.516million due mainly to higher dividend income from subsidiaries (FY20: RM41million vs. FY19: RM35 million.) 3.4 Material Events 3.4.1 Share Buy-Back The Company had on 1 August 2019 obtained approval from its shareholders at the 11th Annual General Meeting (“AGM”) to purchase shares at any time up to 10% of the total number of issued shares quoted on Bursa Malaysia Securities Berhad (“Share Buy-Back”). The Share Buy-Back shall continue to be in force until the conclusion of the next AGM of the Company at which time the authority shall lapse unless renewed by an ordinary resolution passed at that meeting. The shares purchased can be retained as treasury shares, distributed as dividend, transferred, resold or subsequently cancelled in accordance with Section 127 of the Companies Act, 2016. As at 31 March 2020, the Company had repurchased its equity securities of 28,412,500 ordinary shares at an average price of RM0.92 per share as treasury shares. The total consideration paid for the purchase was RM26,133,882, including transaction costs. 3.4.2 Employees’ Share Option Scheme (“ESOS”) TheCompany hadon6December 2019, proposed to establish and implement anEmployees’ ShareOption Scheme (“Proposed ESOS”) of up to 7.5% of the total number of issued ordinary shares of Datasonic (excluding treasury shares, if any) at any point in time during the duration of the ESOS for the eligible Directors andemployees ofDatasonic and its subsidiaries (“DatasonicGrouporGroup”) (excludingdormant subsidiaries). On 24 December 2019, the additional listing application in relation to the Proposed ESOS has been submitted to Bursa Securities. On 20 January 2020, Bursa Securities approved the listing of the Proposed ESOS, subject to the following conditions: i) AmInvestment Bank is required to submit a confirmation to Bursa Securities of full compliance of theProposedESOSpursuanttoparagraph6.43(1)oftheListingRequirementsandstatingtheeffective dateofimplementationtogetherwithacertifiedtruecopyoftheresolutionpassedbytheshareholders in general meeting approving the Proposed ESOS; and ii) Datasonic is required to furnish Bursa Securities on a quarterly basis a summary of the total number of shares listed pursuant to the exercise of options under the Proposed ESOS as at the end of each quarter together with a detailed computation of the listing fee payable. On5February2020, theCompany issued theCircular to theShareholders in relation to theProposedESOS together with the Notice of Extraordinary General Meeting (“EGM”). The EGM of the Company was held at Cindai 1 & 2, Cyberview Resort & Spa, Persiaran Multimedia, 63000 Cyberjaya, Selangor Darul Ehsan on Thursday, 20 February 2020, wherein the shareholders had approved the proposed ESOS. TheESOSCommittee has been formedby theBoardon27February 2020. Acopy of the terms of reference of the ESOS Committee is made available for reference at the Company’s website: www.datasonic.com . my. To-date of this report, no ESOS has been offered. Management Discussion & Analysis (Cont’d) DATASONIC GROUP BERHAD I ANNUAL REPORT 2020 (Registration No. 200801008472 (809759-X)) 25