Viz Branz reveals update on shareholders’ ownership dispute

Chng Khoon Peng filed a suit against Ben Chng Beng Beng for a dispute over the ownership of ~19% shares in the Company in February but they have finally come to terms.

Last 23 February 2011, the Company received a copy of a writ of summons filed by Mr Chng Khoon Peng (as plaintiff) against Mr Ben Chng Beng Beng (as defendant) in the High Court of Singapore in relation to a dispute over the ownership of shares in the Company amounting to approximately 19% of the issued share capital of the Company (excluding treasury shares). Mr Chng Khoon Peng is an Executive Director of the Company and Mr Ben Chng Beng Beng is the Group Deputy Chairman and Managing Director.

Recently, the Company has been informed by Mr Ben Chng Beng Beng that:

1. The parties have entered into a settlement agreement in relation to the Suit on a without admission of liability basis.

2. The terms of the settlement agreement are confidential, save that pursuant to the settlement, CBB shall transfer to CKP or his nominee 53,258,361 shares in the capital of the Company (each a "Share") ("Transfer") within 5 business days of the date of receipt of the Securities Industry Council's ("SIC") written decision on CKP's application for an exemption from making a general offer which may result under the Singapore Code on Takeovers and Mergers ("Code") due to the Transfer.

3. CBB currently owns approximately 50.15% of the entire issued and paid up Shares (excluding treasury Shares), and subsequent to the Transfer, shall hold approximately 35.20% of the entire issued and paid up Shares (excluding treasury Shares).

The Company shall keep shareholders updated of further material developments, if any.