The Board of Directors of Bonia Corporation Berhad (“Bonia” or “Company”) wishes to inform that the Company had on 31 March 2016 executed 2 sets of transfer instruments [Forms of Transfer of Securities (Forms 32A)] to dispose of its entire equity interest in Mcolour & Design Sdn Bhd (“MCD”, a wholly-owned direct subsidiary) representing 100,000 ordinary shares of RM1.00 each in MCD (“Sale Shares”) to the following purchasers for a total consideration of RM60,000.00 only (“Disposal consideration”) to be satisfied by way of cash payment within 14 days from the date of the said Forms 32A:

(collectively, “Disposal”)

MCD is a private limited company incorporated in Malaysia on 28 November 2002 under the Companies Act, 1965. The  present  authorised  and  issued  share  capital  of  MCD  are RM100,000.00 comprising 100,000 ordinary shares  of RM1.00 each respectively. The Company’s original cost of investment for the Sale Shares was RM100,000.00 only. MCD became dormant after ceasing its business in product design, research and development in February 2015. It is not a major subsidiary and/or contributor to the revenue or profit of Bonia Group. Upon completion of the Disposal, MCD shall cease to be a wholly-owned direct subsidiary of Bonia.

CNY and YYF are purchasers that have no relationship with MCD, Bonia nor their Directors, major shareholders or persons connected to them.

The  Disposal  Consideration  was  arrived  at  on  a  “willing-buyer  willing-seller”  basis  after taking into consideration the par value of the Sale Shares as well as the net loss and net assets of MCD of  RM14,252.00 and RM96,679.00 respectively as reported in its management accounts made up to 31 March 2016. The Disposal is not subject to the approval of the shareholders of the Company and is expected to be completed within 45 days from the date of the Forms 32A.

The Disposal is part of the Company’s restructuring plan on internal reorganization so to enable Bonia Group to save future costs associated with maintaining a dormant subsidiary. It will not have any material effect on the consolidated earnings, net assets and gearing of the Company for the financial year ending 30 June 2016. The expected loss to the Group from the Disposal is RM36,679.00 and no liabilities is to be assumed by the purchasers.

None of the Directors of the Company and to the best knowledge of the Directors, none of the major shareholders or persons connected to them has any interest, direct or indirect in the Disposal.

Having considered all relevant aspects of the Disposal, the Board of Directors of Bonia are of the opinion that the Disposal is in the best interest of the Bonia Group.

This announcement is dated 1 April 2016.