Wednesday 10 October 2018

The Contract was entered into on 30 November 2006 between CNR International (Olowi) Limited (“CNR”) and Knock Allan Pte Ltd (“Knock Allan”), an indirect wholly-owned subsidiary of the Company incorporated in the Republic of Singapore, for a fixed primary term of 10 years, commencing from 1 May 2009, and expiring on 30 April 2019.

On 8 October 2018, Knock Allan has received a notice of termination of the Contract from CNR on the ground of convenience, which entails payment of an early termination payment by CNR, which obligation to make early termination payment has been confirmed by CNR in the Notice of Termination.

Contract termination pursuant to the Notice of Termination takes effect on the Demobilisation Date which is estimated to be 31 January 2019, with the exact date being subject to the coordinated execution of the required activities by CNR and Knock Allan.

It is further provided in the Notice of Termination that the early termination payment will be paid by CNR to Knock Allan on 31 January 2019 in accordance with, and subject to, the terms of the Contract.

The termination of the Contract is not expected to have material adverse effect on the Company’s earnings, net assets per share and gearing for the financial year ending 31 January 2019.

The Company will make appropriate announcement(s) to Bursa Malaysia Securities Berhad in relation to any material developments concerning the aforesaid termination.

The announcement was made on 9 October 2018.