The Board of Directors of Kingsmen Creatives Ltd. ("the Company") wishes to announce that the Company has on 14 April 2005, entered into an Agreement for Setting Up of a New Company in Indonesia ("the Agreement") with PT Kingsmen Trisekawan Manunggaljaya ("PT Kingsmen"), Mrs Josepina Setiawan Buditjahjono on behalf of all the other shareholders of PT Kingsmen and Mr Benedict Soh Siak Poh and Mr Simon Ong Chin Sim. Mr Benedict Soh Siak Poh and Mr Simon Ong Chin Sim are the Group Managing Director and Group Executive Director of the Company respectively. They are also substantial shareholders of the Company and collectively the beneficial owners of 20% of the total shareholding in PT Kingsmen.
Under the Agreement, the Company shall incorporate a new wholly-owned Foreign Direct Investment company in Indonesia ("PMA Company") to take over the operations of PT Kingsmen which shall be dissolved by 30 April 2005 or such other date as the parties agree.
The PMA Company shall have its business operations in Indonesia, and shall engage in the similar business of designing and producing Exhibits and Interiors as the Group.
A further announcement will be made by the Company upon the incorporation of the PMA Company.
The Agreement 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 2005.
Save as disclosed, none of the directors or substantial shareholders of the Company has any interest, direct or indirect, in the Agreement.