APPENDIX

TABLE 1- AGGREGATE VALUATION OF THE PLANTATION ASSETS

Plantation Assets / Material date of valuation / Valuation (RM)
1) Malakoff estate / 5 June 2008 / 104,500,000
2) Bebar estate / 10 June 2008 / 89,700,000
194,200,000

TABLE 2- INFORMATION ON THE PLANTATION ASSETS

Malakoff estate

Size (hectares) / : / 1,399.22
Location / : / Tasek Gelugor, Seberang Perai Utara, Penang
Tenure / : / Twenty (20) lots held under freehold (Grant-in-Perpetuity) interest, whilst another five (5) lots held under 61-year leasehold interest expiring on 12 September 2027 (approximately 19 years unexpired term)
Present usage / : / Plantation
Future usage / : / Plantation
Type of cultivation / : / Oil palm
Audited net book value as at 30 June 2007 / : / RM69,405,904
Valuation by Azmi & Co / : / RM104,500,000
Method of valuation by Azmi & Co / : / Discounted Cash Flow (“DCF”) method
Encumbrance / : / Nil
Restrictions in interest / : /
  • For freehold tenure: Nil
  • For leasehold tenure : Rimba Nilai may not assign or demise the land in parcels or otherwise than the entirety thereof

Bebar estate

Size (hectares) / : / 2,340.58
Location / : / Tun Abdul Razak Highway, 13 km from Muadzam Shah, Pahang Darul Makmur
Tenure / : / Five (5) lots held under 99-year leasehold interest expiring on 29 April 2083 (Lot No. 406) and 1 May 2083 (Lot Nos. 1326, 1327, 1328 and 1329), all approximately 75 years unexpired term
Present usage / : / Plantation
Future usage / : / Plantation
Type of cultivation / : / Oil palm
Audited net book value as at 30 June 2007 / : / RM39,635,703
Valuation by Azmi & Co / : / RM89,700,000
Method of valuation by Azmi & Co / : / DCF method
Encumbrance / : / Nil
Restrictions in interest / : / The land is not to be transferred, pledged or mortgaged without the approval from the State Authorities

TABLE 3- EFFECTS OF THE PROPOSED SALE AND LEASEBACK ON THE NA OF THE BHB GROUP

Audited as at
31 Dec 07 / After Proposed Exercise Of First Call Option* / After Proposed Sale and Leaseback*
RM’000 / RM’000 / RM’000
Share capital / 314,520 / 314,520 / 314,520
Share premium / 439,052 / 439,052 / 439,052
Revaluation reserves / 41,621 / 41,621 / 41,621
Non distributable reserves / 220,638 / 220,638 / 220,638
Retained profits / 1,345,090 / 1,345,090 / 1,424,580
Net assets/shareholders’ equity / 2,360,921 / 2,360,921 / 2,440,411
NA per Share (RM) / 3.75 / 3.75 / 3.88

Note:-

* Not including the effects of the privatisation of BProp which had been announced on 15 May 2008

TABLE 4- EFFECTS OF THE PROPOSED SALE AND LEASEBACK ON THE GEARING OF THE BHB GROUP

Audited as at
31 Dec 07 / After Proposed Exercise Of First Call Option* / After Proposed Sale and Leaseback*
RM’000 / RM’000 / RM’000
Shareholders’ equity / 2,360,921 / 2,360,921 / 2,440,411
Borrowings - Long term / 1,152,124 / 1,152,124 / 1,152,124
- Current / 2,231,109 / 2,344,019 / ^ / 2,235,619 / #
3,383,233 / 3,496,143 / 3,387,743
Gearing(Times) / 1.43 / 1.48 / 1.39

Note:-

* / Not including the effects of the privatisation of BProp which had been announced on 15 May 2008
^ / Assuming the net acquisition price of RM112,909,779 pursuant to the Proposed Exercise Of First Call Option is funded by borrowings
# / Assuming the Cash Consideration of the Proposed Sale and Leaseback amounting to RM108,400,000 is utilise to pare down borrowings