News

The Board of Directors of APM Automotive Holdings Berhad (“APM” or “the Company”) is pleased to inform that Myanmar Investment Commission (“MIC”) has issued a Permit dated 23 August 2013 to approve an investment proposal by APM Automotive Myanmar Ltd and APM Automotive Indochina Ltd (“Labuan Subsidiaries”), Labuan incorporated subsidiaries of APM Group for manufacturing and marketing of automotive parts and modules in the industrial area of Bago Region, Myanmar (“Project”) under the name of APM Auto Components Myanmar Co., Ltd.

To undertake the Project, Labuan Subsidiaries have submitted to the Ministry of National Planning and Economic Development of Myanmar to establish a new subsidiary with the name of APM Auto Components Myanmar Co., Ltd. (“APM Myanmar”) in the Republic of the Union of Myanmar under its Companies Act, 1913 and the permanent certificate of incorporation dated 10 October 2013 was received by the Company on 16 October 2013.

APM Myanmar will have an authorised capital of USD10,000,000 divided into 10,000,000 of USD1 each. The minimum required capital, which is internally funded, is USD150,000 of which USD75,000 has been paid up. The shareholders of APM Myanmar are:- 

The MIC Permit is for a period of 50 years, commencing from the date of the signing of a Land Lease Agreement between APM Myanmar and the Bago Region Government, and extendable for further periods of two terms of 10 years each. The Permit allows for certain tax exemptions and reliefs applicable upon implementation of the Project as provided for under the Myanmar Foreign Investment Law. These include income tax exemptions, exemption and reliefs from customs taxes and internal taxes for machineries and equipment for the construction of the manufacturing plant.

The manufacturing plant in Bago, sited on a 30 acre leased land, is planned for manufacturing and marketing of automotive parts and modules by the APM Group. Construction of the plant will commence within one year from the date of the MIC Permit and completion is expected in three years.

The initial outlay of APM Group for the construction of manufacturing plant, purchase of machineries and equipment for the first three years is estimated at USD9.0 million and will be funded internally and from external borrowings.

The Project has no material effect on the earnings and net tangible assets of APM Group for the financial year ending 31 December 2013.

None of the directors and substantial shareholders of the Company has any interest, direct or indirect, in the incorporation of APM Myanmar.

This announcement is dated 16 October 2013.