Investors – Jaya Tiasa Holdings Berhad

Investor Relations

Recurrent Related Party Transactions ("Recurrent Transactions")

BackAug 01, 2001

General Announcement
Reference No JT-010725-64400

Company Name	:	JAYA TIASA HOLDINGS BHD
Stock Name	:	JTIASA
Date Announced	:	01/08/2001


Type	:	Announcement
Subject	:	RECURRENT RELATED PARTY TRANSACTIONS ("RECURRENT TRANSACTIONS")

Contents :

1.INTRODUCTION

The Board of Directors of JAYA TIASA HOLDINGS BERHAD ("JTH" or the "Company") wishes to announce that pursuant to Paragraph 10.08 and 10.09 of the Kuala Lumpur Stock Exchange Listing Requirements and Practice Note No. 12/2001, the Recurrent Transactionsof a revenue or trading nature entered and/or to be entered by JTH and/or its subsidiaries as set out in Table A below during the period from 1 June 2001 up to the date of obtaining the shareholders' mandate(not later than 31 January 2002) are expected to exceed the prescribed limit of RM1,000,000.

2.DETAILS OF RECURRENT TRANSACTIONS

Table A

Nature of Transactions entered and/or to be enteredby the Company ("JTH") and/or its subsidiaries	Related Party
Contracts for the harvesting of logs from the timber concessions	Tiong Toh Siong & Sons Sdn Bhd Taman Logging Sdn Bhd Meli-Mujong Logging Sdn Bhd Hose Mountains Logging Sdn Bhd Rimbunan Hijau Sdn Bhd
Sale of logs	Subur Tiasa Group comprising Subur Tiasa Holdings Bhd and its wholly-owned subsidiaries, namely, Subur Tiasa Plywood Sdn Bhd, Homet Raya Sdn Bhd and R.H. Timber Processing Industries Sdn Bhd
Purchase of logs	Binamewah Sdn Bhd
Purchase of raw material (glue)	Petanak Enterprises Sdn Bhd
Procurement of towage and freight services	Onward Shipping Sdn Bhd

The Related Parties are persons connected with the directors and major shareholders of JTH.

The interest of directors, major shareholders and person connected with them in the Related Parties are contained in Table B attached below.

The Group has established procedures that the Recurrent Transactions are undertaken on arm's length basis and on terms not more favourable to the related party than those generally available to the public and are not to the detriment of the minority shareholders.

3. PRINCIPAL ACTIVITIES

The principal activities of JTH are investment holdings, provision of management services and extraction and sale of logs. The principal activities of its subsidiaries include the manufacture and sale of plywood, veneer, sawn timber, sliced veneer and fancy plywood, the extraction and sale of logs and trading of related timber products.

4. RATIONALEAND BENEFITS OF THE RECURRENT TRANSACTIONS

The Recurrent Transactions entered and/or to be entered by the Group are of a revenue or trading in nature which are necessary for day-to-day operations and are in the ordinary course of business of the Group. They are recurring in nature which are likely to occur with some degree of frequency and arise any time from time to time.

The JTH Group has a long-standing relationship with the Related Parties. The provision of and obtaining from, the related parties of products and services under the Recurrent Transactions as listed in Table Aaboveshall enable the Group the benefit of competitive prices and rates taking into consideration of the level of consistency, reliability, speed and quality of the services provided and the product received. The Group also benefits from better utilisation and allocation of resources through the provision of services and products. The Group is able to secure the services from suppliers of related party with the desired capability and capacity to meet the Group's requirements.

5.INTEREST OF DIRECTORS, MAJOR SHAREHOLDERS AND PERSONS CONNECTED

Save as disclosed hereinand as far as the Directors are able to ascertain, none of the other Directors and/or major shareholders of JTH and/or persons connected to them has any interest, direct or indirect, in the Recurrent Transactions.

6. APPROVAL REQUIRED

JTH will be seeking shareholders' ratification / mandate for the Recurrent Transactions at an Extraordinary General Meeting to be convened by the Company before 31 January 2002.

7. ABSTAIN FROM VOTING

Interested Directors have abstained and will abstain from deliberation and voting on the relevant resolutions at the board meetings. The interested directors and the major shareholders and persons connected with them shall also abstain from voting on the resolution in respect of the shareholders' mandateat the General Meeting.

Further, the interested directors and/or major shareholders undertake that they will ensure that the persons connected with them will abstain from voting on the resolution in respect of the shareholders' mandateat the General Meeting.

8. STATEMENT BY DIRECTORS

The Board of Directors of JTH, having considered all aspects of the Recurrent Transactions, is of the opinion that the Recurrent Transactions are in the best interest of the Group.

Attachments

Table_B01.doc (Size: 46,080 bytes)

Investor Relations

Recurrent Related Party Transactions ("Recurrent Transactions")

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