Kawan Food | Investor Relations

Type:

Announcement

Date:

02/11/2006

Contents:

Further to the Company's announcement on 8 August 2006, the extension of four (4) months to comply with the Public Shareholding Spread as stipulated in Paragraph 8.15 of the Listing Requirements had expired on 31 October 2006. The Board of Directors of KFB is in the midst of applying to the Bursa Malaysia Securities Berhad for a further extension of time of six (6) months for the Company to comply with the the public shareholding requirement.

The public shareholding spread of KFB as at 30 September 2006 was 23.52% in the hands of 562 public shareholders as compared to 23.52% in the hands of 571 public shareholders as at 30 June 2006.

KFB is adopting the following short term measures to rectify the shortfall in number of public shareholders and the shortfall in percentage of public shareholdings of 438 and1.48% respectively.

Rectification Plan	Tentative timeline	Status
Directors and Major Shareholders of KFB and persons connected with them to sell down their shares at open market (subject to factors such as pricing).	November 2006 to April 2007	Due to the sluggish market in the past three months (Highest :1.05 on 26 October 2006, Lowest: 0.93 on 5 September 2006), none of the Directors or Substantial Shareholders had sold down their shares.
Encourage the employees and business associates of the Company to invest or invest further into KFB’s shares through the open market.	November 2006 to April 2007	Ongoing. The Company is actively encouraging the employees to buy its shares.
Discussions will be held with the Merchant Bankers and Universal Brokers to come out with a structured plan to create public awareness to increase the number of public shareholders and also to explore the possible corporate exercise(s) which would enable the Company to enhance its public shareholdings spread.	November 2006 to January 2007	Ongoing. A preliminary meeting on the possible steps to be taken was held with a Merchant Banker in Mid-August. The Company has yet to receive any feedback from them. The Company will continue discuss with other Merchant Bankers and Universal Brokers as well to consider the possible ways of increasing the number of public shareholders.
As part of the public awareness programme, the Company has plans to engage a public relations company to do some write-up regarding KFB to keep the public informed of the Company’s activities so that more potential investors are drawn to invest in the Company for its value.	November 2006 to January 2007	Ongoing. The Company will organise a series of road-shows to create public awareness upon the materialisation of the expansion programmes and overseas investment in two to three month's time, by which time hopefully the market is good.

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