The Board of Directors of Kingsmen Creatives Ltd. ("the Company") wishes to announce that the Company has invested an additional KRW124,288,200 (approximately S$199,000) in the share capital of Kingsmen (Korea) Limited ("KKL"), an associated company of the Company, by way of a subscription of 7,143 shares of KRW5,000 each at the price of KRW17,400 per share.
The purchase consideration was determined based on a price to earnings ratio of six times on the average earnings of KKL for FY2004 and FY2005, and its forecasted earnings for FY2006.
The authorised capital of KKL is KRW5,000,000,000. With the above investment, the issued and paid-up capital of KKL have increased from KRW500,000,000 to KRW535,715,000. The above investment will result in the Company holding 30% of the issued share capital of KKL.
The additional investment in KKL was funded through internal resources and is not expected to have a material impact on the earnings per share and the net tangible assets per share of the Company for the financial year ending 31 December 2006.
None of the directors or substantial shareholders of the Company has any interest, direct or indirect, in the investment.