D&O GREEN TECHNOLOGIES BERHAD
DISCONTINUATION OF MOLDED DISCRETE PACKAGING LINE BY OMEGA SEMICONDUCTOR SDN BHD
The Board of Directors of D & O Green Technologies Berhad (“D&O”) wishes to announce that its wholly-owned subsidiary, Omega Semiconductor Sdn Bhd (“Omega”), via a Board resolution on 18 November 2010, has decided to discontinue its molded discrete packaging production line.
Since Omega terminated the contract manufacturing agreement with a major customer in 2009, the molded discrete packaging unit has been incurring losses. The Board of D&O is therefore of the opinion that the decision is in the best interest of Omega and the D&O Group. The decision is also in line with the D&O Group’s strategy, as announced earlier, to focus on the promising LED lighting component and lighting solution business.
Further, the Board of Directors of D&O wishes to announce that the discontinuation of Omega’s molded discrete packaging line will result in a negative impact on net asset amounting to RM18,590,792. The provision will be recognized in the upcoming third quarter results announcement scheduled for 24 November 2010. The provision will not have any effect on the share capital, substantial shareholdings and gearing of D&O Group.
This announcement is dated 22 November 2010.
Announcement Details :
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