UPP Greentech and MSPL terminate JV agreement in Myanmar

But will still incorporate JV vehicle.

In a disclosure to the Singapore Exchange, the Board of Directors of UPP Holdings Limited announced that UPP Greentech Pte. Ltd. (UPP Greentech) and Myan Shwe Pyi Limited (MSPL) have entered into an agreement to terminate their joint venture agreement (JVA) by mutual agreement.

Notwithstanding the termination of the JVA, pursuant to the Agreement, UPP Greentech and MSPL have agreed to proceed with the on-going incorporation of UPP-MSP, which would be the joint venture vehicle for any future investment of the parties in Myanmar.

The total issued and paid-up share capital of UPP-MSP will be maintained at its current level of US$50,000 comprising 50,000 ordinary shares of US$1 each as required by the Companies Registration Office of Myanmar and will not be increased to US$12,000,000 divided into 12,000,000 shares of US$1.00 each as contemplated in the JVA.

The total issued and paid-up capital of UPP-MSP is held in the following proportions: MSPL, 12,500 shares representing 25% of the share capital of UPP-MSP; and UPP Greentech, 37,500 shares representing 75% of the share capital of UPP-MSP.

UPP Greentech has 2 board seats, whereas MSPL has 1 board seat on UPP-MSP.

The termination of the JVA and the incorporation of UPP-MSP are not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of the Company and its subsidiaries, for the current financial year ending 31 December 2013.

None of the directors, controlling shareholders or substantial shareholders of the Company has any interest, indirect or indirect, in the above transactions.