Leweko Resources Bhd...July 2008

It is acquiring a 51% stake in SCK Wooden Industries Sdn Bhd for RM7.9 million cash as part of its plan to expand its downstream timber manufacturing activities and to increase its product range.

The acquisition, which is expected to be completed by the fourth quarter of 2008, would enable the group to leverage on the marketing network of SCK and contribute positively to its earnings potential. The wider range of products and increased market access will also provide a good avenue for the Leweko group to achieve product and market diversification.

SCK’s solid and two-ply engineered hardwood flooring, which has earned a solid reputation from its customers in Italy and the United States, would widen the range of the group’s products.

The proposed acquisition, which will see SCK becoming a subsidiary company of Leweko Capital, would be financed via internally generated funds and bank borrowings.