Eng - IOI Group

Directors’ Report cont’dSignificant Events During the Financial Yeari. Acquisition of 70% equity interest in Rinwood Pelita Plantation Sdn Bhd and Rinwood Pelita Quarry Sdn BhdOn 1 September 2006, the Company acquired from Rinwood Oil Palm Plantation Sdn Bhd (“Vendor”) the following:a) 9,100,000 ordinary shares of RM1.00 each representing 70% of the issued and paid-up share capital of Rinwood PelitaPlantation Sdn Bhd (“Rinwood Pelita”) for a cash consideration of RM21.4 million; andb) 2,100,000 ordinary shares of RM1.00 each representing 70% of the issued and paid-up share capital in Rinwood PelitaQuarry Sdn Bhd (“Rinwood Quarry”) for a cash consideration of RM1.5 million.Rinwood Pelita is principally engaged in the cultivation of oil palm and is the beneficial and/or registered proprietor of lands witha total titled area of 9,040 hectares located in the Dulit and Tinjar Land Districts in Baram, Sarawak, of which approximately 3,167hectares is planted with oil palm trees with ages ranging from 3 - 10 years. Rinwood Quarry is the holder of a license to quarryand remove stone issued by the Land and Survey Department.In addition, the Company also paid RM29.5 million on behalf of Rinwood Pelita to the Vendor, for the settlement of debt owing byRinwood Pelita to the Vendor and its associates as at the completion date of 1 September 2006.Subsequent to the acquisitions, Rinwood Pelita and Rinwood Quarry have changed names to IOI Pelita Plantation Sdn Bhd and IOIPelita Quarry Sdn Bhd respectively.ii.Acquisition of 925 hectares of land in MelakaOn 5 May 2006, IOI Properties Berhad (“IOIP”), a subsidiary of the Company, announced that its wholly-owned subsidiaries, FloraHorizon Sdn Bhd, Hartawan Development Sdn Bhd, Pilihan Teraju Sdn Bhd and Paduwan Development Sdn Bhd, had respectivelyentered into conditional sale and purchase agreements with Guthrie Ropel Berhad and its wholly-owned subsidiary, Guthrie RopelDevelopment Sdn Bhd to acquire freehold land located in the State of Melaka with a combined area of approximately 925 hectaresfor a total purchase consideration of RM91.3 million. The acquisition was completed on 1 November 2006.iii. Issuance of USD370 million Zero Coupon Guaranteed Exchangeable Bonds due 2011On 18 December 2006, the Company’s wholly-owned subsidiary, IOI Capital (L) Berhad, a company incorporated in the FederalTerritory of Labuan under the Offshore Companies Act, 1990, issued USD370 million Zero Coupon Guaranteed ExchangeableBonds due 2011 (“2 nd Exchangeable Bonds”). The 2 nd Exchangeable Bonds were issued at 100% of the principal amount and listedon the Singapore Exchange Securities Trading Limited and the Labuan International Financial Exchange and will mature on 18December 2011. The 2 nd Exchangeable Bonds are unconditionally and irrevocably guaranteed by the Company.115ANNUAL REPORT 2007IOI Corporation Berhad