Thursday, Oct 27, 2005
This press announcement is made to clarify MARC’s press announcement dated 21 October 2005 entitled “MARC PLACES THE RATING OF EUROPLUS CORPORATION SDN BHD’S RM350 MILLION MURABAHAH UNDERWRITTEN NOTES ISSUANCE FACILITY (MUNIF) ON MARCWATCH WITH NEGATIVE OUTLOOK”.
MARC seeks to clarify that the abovementioned MARCWatch with negative outlook is premised upon ECSB’s:
- current weak cash flow position resulting from the delays in development projects, and
- its reliance on the proposed disposal of 25% equity interest in Kumpulan Europlus Berhad (KEB) shares to IJM Corporation Bhd (IJM), with which the deadline for completion of the related Share Purchase Agreement has been extended to 30 November 2005. The current proposed disposal of 25% equity interest in KEB to IJM is viewed as a key solution to their cashflow difficulties because, upon completion of the Share Purchase Agreement, IJM, with its reputable standing in the industry, will add credence and will further assure ECSB in meeting their commitment through the provision of management and development expertise and continuous progression in the terms of stage of development. The completion of the Share Purchase Agreement disposal is contingent upon, the fulfilment of certain conditions precedent including the signing of the West Coast Highway Concession Agreement. As the deadline for the completion of the Share Purchase Agreement is now extended to 30 November 2005, we do not expect any immediate relief to Europlus’s debt servicing pressures.
MARC will continue to monitor developments and assess their impact on the rating.
MARC seeks to clarify that the abovementioned MARCWatch with negative outlook is premised upon ECSB’s:
- current weak cash flow position resulting from the delays in development projects, and
- its reliance on the proposed disposal of 25% equity interest in Kumpulan Europlus Berhad (KEB) shares to IJM Corporation Bhd (IJM), with which the deadline for completion of the related Share Purchase Agreement has been extended to 30 November 2005. The current proposed disposal of 25% equity interest in KEB to IJM is viewed as a key solution to their cashflow difficulties because, upon completion of the Share Purchase Agreement, IJM, with its reputable standing in the industry, will add credence and will further assure ECSB in meeting their commitment through the provision of management and development expertise and continuous progression in the terms of stage of development. The completion of the Share Purchase Agreement disposal is contingent upon, the fulfilment of certain conditions precedent including the signing of the West Coast Highway Concession Agreement. As the deadline for the completion of the Share Purchase Agreement is now extended to 30 November 2005, we do not expect any immediate relief to Europlus’s debt servicing pressures.
MARC will continue to monitor developments and assess their impact on the rating.