1. Introduction

The Board of Directors of SGB wishes to announce that SCSB has today entered into a loan agreement with Rentak Rimbun Sdn Bhd ("RRSB") in relation to the provision of financial assistance to SCSB amounting to RM670,000.00 ("Loan") ("Financial Assistance"). RRSB is a substantial shareholder of the Company. En Shah Hakim @ Shahzanim Bin Zain has shareholding interest in RRSB and is also deemed a substantial shareholder of SGB through his direct and indirect shareholding in the Company. 

En Shah Hakim is deemed interested in the Financial Assistance.

2.Financial Assistance-Principal Salient Terms

(a)The Financial Assistance is for the purpose of meeting the working capital requirements of SCSB.

(b)The Loan is interest-free with one-off management fees of RM6,700.00 (“Management Fees”) payable on repayment of the Loan.

(c)The Financial Assistance is for a tenure of 2 months ("Repayment Date").

(d)The securities pledged for the Loan are as follows:

i)100,000 ordinary shares of SCSB owned by SGB representing 100% shareholding in SCSB by SGB (“Security 1”).

ii)12,000,000 ordinary shares of Strong Elegance Sdn Bhd (“SE”) owned by SGB representing 42.8% shareholding in SE (“Security 2”), a jointly-controlled entity of SGB.

iii)5,200,000 ordinary shares of Scomi Energy Services Bhd (“SESB”) owned by SGB (“Security 3”).

3.Financial Effects on the Financial Assistance

(a)Share Capital, Substantial Shareholders' Shareholding and Net Assets ("NA")

The Financial Assistance will not have any effect on the issued and paid-up share capital, substantial shareholders' shareholding and consolidated NA of SGB.

(b)Earnings

The Financial Assistance is not expected to have any material effect on the consolidated earnings of SGB.

4.Directors' and Substantial Shareholders' Interests

Save as disclosed above (under Section 1) insofar as the directors of SGB are aware, none of the other directors, persons connected with the other directors or other substantial shareholders of SGB, has any interest, direct or indirect in the Financial Assistance.

5.Statement by the Directors

Having considered all aspects of the Financial Assistance, the Board of Directors of SGB are of the opinion that the Financial Assistance is fair and reasonable and is in the best interest of the Company.

6.Other Matters

The Financial Assistance is not subject to any approval from the regulatory authorities or the shareholders of SGB.

This announcement is dated 14 March 2023.