1.0 INTRODUCTION
 
The Shareholders of the Company, at the Extraordinary General Meeting held on 30 September 2013, had approved the proposed disposal of 56,671,000 ordinary shares in IJM Corporation Berhad ("IJM"). Pursuant to Paragraph 10.06 (1) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad ("MMLR"), ZB wishes to announce that it had, on 10 February, 11 February and 12 February 2014 further disposed of 1,861,900 ordinary shares of RM1.00 each in IJM in the open market (the "Sale Shares") at an average disposal price of RM5.748 per share for a total net consideration of RM10,677,041.78 (the "Disposal").

2.0 DETAILS OF THE DISPOSAL
 
2.1 Information on IJM

IJM, a public listed company listed on the Main Board of Bursa Malaysia is principally involved in the construction, property development, manufacturing and quarrying, infrastructure concessions and plantations. IJM has an authorised capital of RM3,000,000,000.00 and a paid-up capital of RM1,417,685,646.00.

2.2 Information on the Sale Shares

The Sale Shares comprise 1,861,900 ordinary shares of RM1.00 each representing approximately 0.13133% of the total issued and paid-up capital of IJM.

2.3 The net cash consideration of RM10,677,041.78 for the Sale Shares was derived on “willing buyer-willing seller” basis.

2.4 There are no liabilities to be assumed by the purchaser arising from the Disposal.

3.0 RATIONALE OF THE DISPOSAL

The rationale of the disposal is to realise funds from the sales proceeds to pay bank borrowings.

4.0 ORIGINAL COST OF INVESTMENT AND UTILISATION OF PROCEEDS

The original cost of investment of the Sale Shares was approximately RM4.14 per share at Group level and RM3.50 per share at Company level.  As at 31 January 2014, the book value of the Sale Shares was approximately RM5.91 per share at Group level.

The sale proceeds will be utilised to pay bank borrowings.

5.0 COMPLETION DATE

The Disposal was completed on 10 February, 11 February and 12 February 2014 respectively.

6.0 FINANCIAL EFFECTS

The Disposal will not have any material financial implication and effect to the net assets per share and has no effect on the share capital and substantial shareholders’ shareholding of the Company. The proceeds will be primarily used to pay bank borrowings and thus would improve the Company’s gearing position. 

The gain on the Disposal at Group level was approximately RM3.0 million while at the Company level was approximately RM4.2 million and this would contribute positively to the Company's earnings per share.

7.0 APPROVALS REQUIRED

The approval to dispose the Sale Shares was obtained as part of the shareholders' mandate for the disposal up to 56,671,000 ordinary shares of RM1.00 each in IJM, which was approved on 30 September 2013.

8.0 DIRECTORS’ AND SUBSTANTIAL SHAREHOLDERS’ INTERESTS

None of the Directors and/or Substantial Shareholders of the Company or persons connected to them has any interest, direct or indirect, in the Disposal.

9.0 PERCENTAGE RATIO
 
The highest percentage ratio applicable to the transaction pursuant to paragraph 10.02 (g) of the MMLR is 7.5%. On aggregate, the highest percentage ratio applicable to the transaction pursuant to paragraph 10.02 (g) of the MMLR is 261.8%.

The summary of the disposals of IJM shares, was as follows:

10.0 STATEMENT BY BOARD OF DIRECTORS

The Board of Directors of ZB, after due consideration of all aspects of the Disposal, are of the opinion that the Disposal is in the best interest of ZB. 

This announcement is dated 12 February 2014.