Reference is made to the Circular to Shareholders in relation to the Proposed Renewal of Shareholder Existing Shareholders’ Mandate for Recurrent Related Party Transactions (“RRPT”) of a Revenue or Trading Nature ("Proposed Mandate") issued by Only World Group Holdings Berhad (“OWG”) on 31 October 2023 ("RRPT Circular"). The ordinary resolution on the Proposed Mandate had been approved by the shareholders of the Company at the 11th Annual General Meeting (“AGM”) held on 18 December 2023.

Pursuant to Paragraph 10.09(2)(e) of Bursa Malaysia Securities Berhad Main Market Listing Requirements and Paragraph 2.5 of Practice Note 12, OWG wishes to announce the variation in the actual value of the RRPT transacted during the mandate period from the estimated value as disclosed in the RRPT Circular of 10% and more (“Variance”), as set out in the table below.

Transacting party within the OWG Group

Interested Related party

Nature of Transaction

Estimated aggregate value during the validity period of the RRPT Mandate from 19/12/2023 to the next AGM in December 2024

Actual value transacted  from 19/12/2023 up to the date of this announcement and the monthly rental to be paid in November 2024 

The Variance in Actual Value and in Percentage

(RM)

(RM)

Platinum Paradise Sdn. Bhd.

Tan Sri Dato’ Seri Dato’ Koh Cheng Keong


Puan Sri Datin Seri Dato’ Chew Lean Hong


Rich Dad Café Sdn. Bhd. 


Koh Jia-Tien

Rental of 19 units of apartment with each unit measuring approximately 97 square metres to 122 square metres at Ria Apartment, Genting Highlands, as staff hostel at a monthly rental of RM2,500 per unit for January to June 2024 and revised monthly rental rate of RM3,500 per unit for the period July to November 2024

570,000

617,500*

RM47,500, representing 8.3% in variance

Rental of 17 units of apartment with each unit measuring approximately 97 square metres to 122 square metres at Ria Apartment, Genting Highlands as staff hostel at a monthly rental of RM2,500 per unit for January to June 2024 and revised monthly rental rate of RM3,500 per unit for the period July to November 2024

510,000

552,500*

RM42,500, representing 8.3% in variance

* The actual value transacted is computed based on the rental paid during the period from 1 January 2024 to 30 June 2024 at the monthly rental of RM2,500 per unit and the rental for the period from 1 July 2024 to November 2024 under the new rental rate of RM3,500 per unit.

The Variance is attributed to an adjustment in rental rates of the apartment units. The Interested Related Parties (as defined in table above) have proposed an increase in the monthly rental from RM2,500 per unit, a rate that has been consistently charged to the OWG Group since 2015, to RM3,500 per unit, effective from 1 July 2024. 

The Audit Committee and the Board, with the Interested Related Parties who are also the Directors of the Company abstained from deliberation and voting, have approved the revision in rental rates. This decision was made considering that the rental rate has remained unchanged since 2015 and the revised rate remains below the market rate for apartments with similar size in the same vicinity.

The rental rate of RM3,500 per month per unit will remain in effect for December 2024. A similar Variance in the actual value of the RRPT to be transacted in December 2024, as compared to the estimated value disclosed in the RRPT Circular.

The Company will be seeking shareholders’ mandate for with the adjusted rental rate at the forthcoming annual general meeting scheduled for December 2024. The RRPT Circular seeking shareholders’ mandate for the aforesaid transactions with revised rental rate will be issued together with the Annual Report 2024.


This announcement is dated 29 October 2024.