PanGlobal Berhad

Further to the announcements dated 5 June 2008 and 7 August 2008, the Company wishes to announce that the Company’s 99.97% subsidiary namely, PanGlobal Insurance Berhad (“PGI”), had on 15 August 2008 entered into a business portfolio transfer agreement (“Agreement”) with Tokio Marine Insurans (Malaysia) Berhad (“TMIM”) to dispose of and transfer its general insurance business comprising the transfer of Sale Assets and Sale Liabilities as more particularly described in the Agreement to TMIM vide a scheme of transfer pursuant to Part XI of the Insurance Act 1996 (“Scheme”) for a cash consideration of RM15 million (“Proposed Disposal”) provided that the value of the Sale Assets to be transferred to TMIM shall be equal to the value of the Sale Liabilities to be transferred to TMIM as at the transfer date.

Further to the announcement dated 31 July 2008 and 1 August 2008, the Company also wishes to announce that it is in the process of negotiating with its lenders to restructure its loans and to regularize its financial position under a revised restructuring scheme. The Company will announce to Bursa Malaysia Securities Berhad (“Bursa Securities”) its revised plan to regularise its financial position in due course. The Proposed Disposal is undertaken in conjunction with the proposed regularisation plan.

Details of the Proposed Disposal are available to download.