The Board of Directors of D & O Green Technologies Berhad (“D&O” or “the Company”) is pleased to announce that the Board had on 5 April 2011 approved the Company to accept the provisional allotment of 25,400,000 new ordinary shares of RM1.00 each of its 51.31% owned subsidiary, Dominant Opto Technologies Sdn Bhd (“Dominant”) to be issued at RM1.00 each for a total cash consideration of RM25,400,000.?The Company also had on 15 April 2011 acquired an additional 12,025,000 new ordinary shares of RM1.00 each of Dominant for a total cash consideration of RM12,025,000, representing the?rights not taken up by other minority shareholders.??/span>(Collectively referred as “the Subscription of Rights Issue”)
The total consideration for the Subscription of Rights Issue of RM37,425,000 will be funded by internally generated funds. As a result of the Subscription of Rights Issue, D&O’s direct equity interest in Dominant will be increased from 51.31% to 63.46%.
The proceeds from the entire Rights Issue of Dominant will be utilised to fund Dominant’s general working capital and reduce borrowings.
The Subscription of Rights Issue does not have any material effect on the net assets, gearing and earnings per share of D&O group for the year ending 31 December 2011.
The Subscription of Rights Issue will not have any effect on the share capital and shareholdings of the substantial shareholders of D&O.
None of the directors and major shareholders of the Company as well as persons connected with them have any interest, directly and/or indirectly, in the Subscription of Rights Issue. The Board is of the opinion that the Subscription of Rights Issue is in the best interest of D&O.?p />