GHL System Berhad Annual Report 2019

A N N U A L R E P O R T 2 0 1 9 185 9. Malaysian Code on Take-Overs and Mergers 2016 (CODE) The Proposed Shares Buy-Back, if carried out in full (whether shares are cancelled or treated as treasury shares), may result in a substantial shareholder and/or parties acting in concert with it incurring a mandatory general offer obligation. In this respect, the Board is mindful of the provisions under Rule 4 of the Rules on Take-Overs, Mergers, and Compulsory Acquisitions. In the event that GHL decides to purchase its own Shares, which will result in Loh Wee Hian, and Actis Stark (Mauritius) Limited’s shareholdings in GHL increasing by more than 2% in any period of six (6) months. Loh Wee Hian and Actis Stark (Mauritius) Limited will seek a waiver from the Securities Commission Malaysia under Rule 4 of the Rules on Take-Overs, Mergers, and Compulsory Acquisitions before the Company purchases its own Shares. 10. Purchases Made in the preceding 12 months The Company did not undertake any Share Buy-Back during the financial year ended 31 December 2019. The Company had completed the resale of treasury shares in 2018. There is no cancellation of shares made in the preceding 12 months. 11. Proposed Intention of the Directors to Deal with the Shares so Purchased The Proposed Renewal of Share Buy-Back Mandate, if exercised, the shares shall be dealt with in the following manner:- z to cancel the shares so purchased; or z to retain the shares so purchased in treasury for distribution as dividend to the shareholders and/or resell on the market of the Bursa Securities or subsequently cancelled; or z retain part of the shares so purchased as treasury shares and cancel the remainder. 12. Historical Shares Prices The monthly highest and lowest market prices of GHL Shares traded on Bursa Securities for the preceding 12 months are as follow: High Low RM RM 2019 June 1.53 1.30 July 1.55 1.33 August 1.46 1.24 September 1.47 1.30 October 1.48 1.32 November 1.47 1.33 December 1.40 1.32 2020 January 1.69 1.33 February 1.75 1.42 March 1.78 1.04 April 2.08 1.58 May 2.10 1.69 The last transacted market price as at 17 June 2020 (being the latest practical date prior to the printing of this Statement) was RM1.97. (Source : Bloomberg) STATEMENT TO SHAREHOLDERS IN RELATION TO THE PROPOSED RENEWAL OF AUTHORITY FOR THE COMPANY TO PURCHASE ITS OWN ORDINARY SHARES CONT’D