1. INTRODUCTION

The Board of Directors of Magna Prima Berhad (MPB) wishes to announce that MPB has acquired 70% of the issued and paid up share capital of Pavilion Uptrend Sdn Bhd (Pavilion Uptrend) (Company No. 1075159-M) on 15 January 2014 comprising 140,000 ordinary shares of RM1.00 each fully paid up for a total cash consideration of RM140,000.00 ("MPB Acquisition"). The cash consideration would be funded through internally generated funds.

Dato' Rahadian Mahmud bin Mohammad Khalil, the CEO of MPB has acquired the remaining 30% of the issued and paid up share capital of Pavilion Uptrend on 15 January 2014 comprising 60,000 ordinary shares of RM1.00 each fully paid up for a total cash consideration of RM60,000.00 ("DRM Acquisition").

2. INFORMATION ON PAVILION UPTREND SDN BHD

Pavilion Uptrend was incorporated in Malaysia as a private limited company under the Companies Act 1965 on 24th December 2013. The authorised share capital of Pavilion Uptrend is RM400,000.00 divided into 400,000 ordinary shares of RM1.00 each, of which RM200,000 has been fully paid up.

Pavilion Uptrend has been dormant since its incorporation. The intended principal activity of Pavilion Uptrend is property development and property investment.

3. FINANCIAL EFFECTS

The acquisition of Pavilion Uptrend will not have any material effect on the earnings per share, net tangible per share or gearing of the Group. There will be no change to the share capital or interest of the substantial shareholders of MPB.

4. LIABILITIES

There are no liabilities to be assumed arising from the Acquisition.

5. CONDITION TO THE ACQUISITION

The Acquisition is not subject to any Malaysian Government authority or shareholders' approval.

6. DIRECTORS' AND SUBSTANTIAL SHAREHOLDERS' INTEREST

Save for Dato' Rahadian Mahmud bin Mohammad Khalil's interest in 30% equity of Pavilion Uptrend, none of the other Directors and/or substantial shareholders of the Company and/or persons connected with the Directors and/or substantial shareholders of the Company have any interest, direct or indirect, in the Acquisition.

7. DIRECTORS' STATEMENT

The Board of Directors of the Company is of the opinion that the Acquisition is in the best interest of the Group.

This announcement is dated 15 January 2014.

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