Shareholders Approve UBG Equity Sale

Friday, 30 April 2010, Kuching – Shareholders of Cahya Mata Sarawak Berhad (CMS) met today at an Extraordinary General Meeting and gave their approval for the proposed disposal by Concordance Holdings Sdn Bhd (CHSB), a wholly-owned subsidiary of CMS, and PPES Works (Sarawak) Sdn Bhd (PPES), a 51%-owned subsidiary of CMS, to PetroSaudi International Ltd of their respective entire equity interests in UBG Berhad, representing in aggregate approximately 37.21% of UBG’s issued and paid-up share capital.

The disposal of CMS’ equity in UBG came about following acceptance by the Board of an offer from PetroSaudi International subject to, inter-alia, the approval of shareholders of CMS.

The deal entails the disposal by Concordance of 141,558,155 ordinary shares of RM0.25 each in UBG representing approximately 28.29% equity interests in UBG for a cash consideration of RM353,895,388; and the disposal by PPES Works of its 44,652,000 UBG shares representing approximately 8.92% equity interests in UBG for a cash consideration of RM111,630,000. The total cash consideration to Concordance and PPES Works for the proposed disposal amounts to RM465,525,388.

The disposal will enable CMS and its subsidiaries to receive an immediate return, fully in cash, on its investment in UBG. The significant gross cash inflow can then be deployed to focus on investment opportunities which can potentially provide higher yield and returns and/or to enhance shareholders’ value.

At today’s EGM, CMS Board of Directors further informed shareholders that it earlier in the day received a letter dated 29 April 2010 from PetroSaudi International Ltd informing Concordance and PPES Works that it was still awaiting certain regulatory approvals in relation to their acquisition of UBG shares.

Per the terms contained in the Letters of Offer from PetroSaudi International Ltd dated 29 December 2009 and accepted by Concordance and PPES Works on 8 January 2010, the disposal of the sale shares would be effected via a direct business transaction in accordance with the applicable rules of Bursa Malaysia on the market day immediately after the date of receipt of the last of the approvals of the shareholders of Concordance and PPES Works (which was received today) and (b) the approval of regulatory authorities in respect of the transaction. The tentative timing for completion of the proposed disposal is end May 2010.