Malayan Banking Berhad (“Maybank”) wishes to announce that its subsidiary, Kim Eng Holdings Limited (“Kim Eng”) has completed the divestment of its 60% equity shares in Heritage Fiduciary Services (“Heritage”) with effect from 18 July 2011. Heritage has therefore ceased to be a subsidiary of Kim Eng and an indirect subsidiary of Maybank.

Kim Eng acquired its 60% equity shares in Heritage pursuant to a Joint Venture Agreement (“JVA”) with American Orient Capital Partners (Singapore) Pte. Ltd. and Lee Xiang Holdings Pte. Ltd. (“Counterparties”) on 2 December 2002 and Heritage became an indirect subsidiary of Maybank via acquisition of Kim Eng in July 2011.

The JVA provides, amongst other things that in the event of change in the shareholding structure of Kim Eng, such that a party other than a related corporation acquires or effectively controls 51% or more of all voting shares of Kim Eng, the rights of first refusal of the Counterparties shall apply, and Kim Eng shall be deemed to have issued a notice of its intention to sell or transfer its 60% equity shares in Heritage to the Counterparties.

Following Maybank’s acquisition of Kim Eng, which was completed on 4 July 2011, there is a change in shareholding structure of Kim Eng for the purposes of the JVA.  Therefore, on 10 June 2011, Kim Eng had entered into a sale and purchase agreement with Philadelphia Pte. Ltd. (“PPL”), a related corporation of Lee Xiang Holdings Pte. Ltd., pursuant to which PPL shall purchase and Kim Eng shall sell its 60% equity shares in Heritage for a total consideration of US$1,200,000.

This announcement is dated 19 July 2011