The Board of Directors of Qian Hu Corporation Limited ("Company") wishes to announce that it has entered into a joint venture agreement ("JV Agreement") with Mr Hendra Suria ("Hendra") and PT Qian Hu Aquarium & Pets Indonesia ("JV Company"), an Indonesian company incorporated as the vehicle for the joint venture.
It is intended that the JV Company shall engage in the business of breeding, rearing, trading and dealing with all kinds of fishes, other aquatic animals and plants and related products, including the distribution of aquarium and pet accessories, and such other business of a similar nature as may be necessary to develop the JV Company's business to become a profitable and commercially viable one (the "Business").
Under the terms of the JV Agreement, the Company will invest 2,375,000,000 Rupiah (approximately S$ 475,000) in cash for a 55% shareholding in the JV Company and Hendra will own the remaining 45% pursuant to and in accordance with the terms and conditions of the asset sale agreement ("Asset Sale Agreement") to be entered between the JV Company, Hendra and PD Natura Indonesia ("Seller") whereby the JV Company will acquire all the assets of the Seller, a sole proprietorship wholly owned by Hendra, currently engaged in the Business. The Company's 55% investment in the JV Company will be funded by internal resources.
By operation of Indonesian law, the employees of the Seller will become the employees of the JV Company upon the execution and completion of the Asset Sale Agreement. The JV Company will also enter into a service agreement ("Service Agreement") with Hendra to serve the JV Company as an executive director or in such other capacity as the directors of the JV Company may deem advisable from time to time. The JV Company will be able to benefit from the experience and know-how of the Business from Hendra and the current employees of the Seller.
The above transaction will not have any material impact on the Company's net tangible assets and earnings per share for the current financial year
None of the Directors or substantial shareholders of the Company have any interest, direct or indirect, in the above transaction.