10 May 1999

Gaming licence of Diriwan Corporation S/B (Diriwan) 

The Co advised that it has no knowledge of any reasons to account for the unusual market action save and except for the interim ann made on 6/5/99.

In response to the Exchange's dated 10/5/99, the Co advised that on 5/11/98, Diriwan applied for renewal of its licence issued by MOF for the collection, operation or promotion of pool betting activities in the State of Sabah in respect of Lotto Game. The licence was renewed by the MOF on 23/4/99.

The details of events leading to the court order dated 11/12/98 were
as fols :-

Based on the licence dated 7/1/98 issued to Diriwan and licence dated 22/4/98 issued to Diriwan's agents, Diriwan had by a letter dated 8/6/98, applied for trading licences for Diriwan agents under the trades licensing ordinance for the promotion and sale of public
lotteries.

On 2/7/98, Diriwan received a letter fm the President of the Kota Kinabalu Municipal Council dated 24/6/98 informing Diriwan that the application for trading licences had been rejected.

Diriwan then consulted its lawyers who advised that their agent's application had been illegally rejected because the trades licensing ordinance had been gazetted on 20/5/65 and the state had no power to interpret the same. Diriwan then filed an originating motion dated
7/8/98 and the motion was heard by the court and an order dated 11/12/98 was made.

Diriwan obtained a sealed copy of the court order on 25/1/99, but since it's main licence has not been renewed by MOF at that time, Diriwan could not proceed further until the main licence is issued. The court order was to enable Diriwan to apply for the trading licence after the main licence is issued.

..............

Qualification No. 2 -- The going concern of a subs, Lotteries Corporation S/B, is dependent on the successful issuance of a trading license by the State Govt of Sabah. Pending the outcome of the litigation which could not be determined presently, no provision for diminution has been made in the accounts of the Co in resp of the carrying value of investment in the subs of RM520.0m and no provision for doubtful debts has been made for inter-co advance of RM63.7m.

Explanation -- The qualification was due to the non-issuance of trading licence by the State Govt of Sabah, despite being issued the gaming licence by the Federal Govt for the past two yrs. It is to be noted that any diminution in the investment cost of RM520m and inter-co advance of RM63.7m would not hv any impact on the Grp's accounts as any diminution or short fall in the assets' value would hv already been reflected in the Grp accounts when the accounts of the above subs were consolidated.
 

URL: http://www.klse.com.my/website/listing/lc/olympia.htm

Some of contents:

Background

The Company was incorporated as a wholly-owned private limited subsidiary of the listed Company, Duta Consolidated Berhad, now known as Olympia Land Bhd, under the name of Olympia Plantations Sdn Bhd.
 
 

It ceased to be a subsidiary of Duta on 15.9.90 when its two ordinary shares were sold to two directors of Olympia, who held these shares in trust for the implementation of Duta's restructuring scheme which was effected on 13.1.92. Olympia was converted into a public company on 17.5.91 and adopted its present name on 18.7.91.
 
 

The conversion into a public company was carried out with the principal objective of implementing the restructuring scheme whereby Olympia became the new holding company of Duta.
 
 

Since 1985, the Duta Group had been incurring operational and extraordinary losses and with the downtrend then in the property market and the economy in Malaysia, it made substantial losses. On 5.11.86 trading in Duta shares was suspended on KLSE when Duta was placed under receivership. This was subsequently lifted on 28.2.89 but by then it had affected the activities of the Duta Group, resulting in huge accumulated losses. The restructuring scheme was carried out to revive the Group into a viable going concern.
 
 

Under the restructuring scheme, Olympia acquired Duta by way of an exchange of shares, in which one Olympia share was issued for every five Duta shares. Olympia also assumed the debts of Duta which it settled via an issue of shares. Olympia also acquired two subsidiaries, Mascon and Maswarna Colour Coatings, as part of the restructuring scheme.
 
 

The delisting of Duta and listing of Olympia took place on 12.3.92.
 

In August 1992, Olympia entered into the property development industry when it acquired United Malaysian Properties Sdn Bhd. In the same year, Olympia ventured into the gaming business when it acquired Lotteries Corporation (Sabah) Sdn Bhd (now known as Lotteries
Corporation Sdn Bhd).
 
 

Olympia also has a 60% interest in stockbroking company Jupiter Securities, and owns a travel and tours agency. The Group has incorporated two subsidiaries, Jupiter Capital (HK) Ltd in Hong Kong and JP Asset Management Sdn Bhd to complement the Group's expansion
in the financial services sector.