The Board of Directors of Tan Chong Motor Holdings Berhad (“TCMH” or “the Company”) is pleased to announce that the Group has incorporated a new subsidiary named E-Garage Auto Services and Spare Parts (Myanmar) Company Limited (“E-Garage Myanmar”) under the Myanmar Companies Act to undertake automobile workshop services in Myanmar. The Certificate of Incorporation was issued by the Ministry of National Planning and Economic Development of Myanmar on 7 December 2011 and received by the Company on 20 December 2011.

E-Garage Myanmar is a 90:10 joint-venture company between TC Express Auto Services and Spare Parts (Labuan) Pty Ltd (“TCEASSP Labuan”), a wholly-owned subsidiary of Tan Chong Ekspres Auto Servis Sdn Bhd, which in turn is a wholly-owned subsidiary of TCMH, and Mr U Khin Maung Lwin (“ML”), a Myanmar businessman.

E-Garage Myanmar was registered with an authorised capital of Kyats100,000,000/- (equivalent to USD16,666,667/-) divided into 100,000 shares of Kyats1,000/- each. E-Garage Myanmar shall have an issued and paid-up capital of Kyats1,800,000/- (equivalent to USD300,000/-). In accordance with the joint venture, TCEASSP Labuan and ML shall make their respective contributions to the paid-up capital of USD300,000/-  in the following manner within 180 days from the date of incorporation of E-Garage Myanmar:

[Note: Exchange Rate: Kyats6/- = USD1/-] 

The capital contribution by TCEASSP Labuan in E-Garage Myanmar will be funded by TCMH Group from its internal sources.

The incorporation of E-Garage Myanmar is a further expansion of the Group’s after-sales services business into the Indo-China and ASEAN regions following the Group’s earlier venture in the after-sales services business in Cambodia and Thailand since 2006 and 2008 respectively. E-Garage Myanmar will commence operation with one workshop in Yangon, Myanmar in the second half of 2012. The joint-venture is not expected to have material effect on the earnings, net assets and gearing of the Group for the financial year ending 31 December 2011, but it is expected to contribute positively to the earnings of the Group in the long term.

None of the Directors and/or substantial shareholders of the Company and/or persons connected with them, has an interest, direct or indirect, in the incorporation of E-Garage Myanmar.