Pursuant to paragraph 9.19(23) of the Main Market Listing Requirements, the Board of Directors of Tan Chong Motor Holdings Berhad (“TCMH” or “the Company”) informs that on 14 October 2013 TC Trucks Group Sdn Bhd (“TCTG”), a wholly-owned subsidiary of TCMH entered into a Share Sale Agreement (“SSA”) with Lim Tiong Bee and Lim Say Gim (collectively, the “Vendors”) to acquire from the Vendors the entire equity interest in Julang Lumayan Sdn Bhd (“JLSB”) comprising 300,000 ordinary shares of RM1.00 each (“Sale Shares”) for a total cash consideration of RM2,351,431.50 (“Acquisition”). Each of the Vendors owns 50% of the Sale Shares. Completion of the Acquisition shall take place within 90 days from the date of the SSA. The Acquisition is duly completed on 18 December 2013 and accordingly, JLSB became a wholly-owned subsidiary of TCTG effective 18 December 2013.

JLSB is a company incorporated in Malaysia under the Companies Act 1965 with an authorised share capital of RM500,000.00 divided into 500,000 ordinary shares of RM1.00 each of which 300,000 ordinary shares of RM1.00 each have been issued and fully paid-up. The principal business of JLSB is property investment holding and it is the legal and beneficial owner of a parcel of leasehold industrial land (expiring on 31 January 2066) measuring 8,566 sq. metres (or 2.1167 acres) located at Kemumin, Kota Bharu, Kelantan (“Land”).  Rahim & Co Chartered Surveyors (Kel) Sdn Bhd, the independent valuer appointed by TCTG has valued the Land at an estimated market value of RM1,850,000.00 via its Valuation Report dated 18 September 2013.

The Group plans to construct a 3S centre on the Land to cater for the expansion of its commercial vehicles business in Kota Bharu.

The purchase consideration for the Sale Shares of RM2,351,431.50 was arrived at on a willing-buyer and willing-seller basis.

The Acquisition was financed by internally generated funds. The Acquisition will not have any material effect on the earnings and net assets of the TCMH Group for the current financial year ending 31 December 2013.

The Acquisition is not subject to the approval of TCMH shareholders. The highest percentage ratio applicable to the Acquisition pursuant to Paragraph 10.02(g) of the Main Market Listing Requirements is 0.12% based on the audited financial statements of TCMH for the financial year ended 31 December 2012.

None of the Directors and/or major shareholders of TCMH and/or persons connected with the Directors or major shareholders, has any interest, direct or indirect, in the Acquisition.

This announcement is dated 18 December 2013.