Joint Venture/Acquisition

RNS Number:4620N
Tanjong PLC
11 July 2003

TANJONG PUBLIC LIMITED COMPANY ("Tanjong" or "Company")

- Proposed joint venture

- Proposed acquisition of assets of CargoLifter AG group of companies



Please find attached a News Release by Tanjong in respect of the Proposed joint
venture and the Proposed acquisition of assets of CargoLifter AG group of
companies dated 11 July 2003.





NEWS RELEASE



                     TANJONG EXPANDS LEISURE BUSINESS WITH

                            TROPICAL RESORT PROJECT





KUALA LUMPUR, Friday, 11 July 2003 - Tanjong Public Limited Company announced
today that the Group has entered into a commercial agreement to acquire the
assets of CargoLifter AG group of companies for a cash consideration of EUR17.5
million (approximately RM76 million).



Included within these assets is the largest free standing hangar in Europe
measuring 360 metres long, 210 metres wide and 107 metres high; a visitors'
centre and buildings as well as freehold land of approximately 500 hectares.



It is Tanjong's intention to develop the hangar, which is located in Brand,
approximately 60 km south of Berlin, Germany into a resort destination which
will house a variety of tropical settings such as a rainforest, sea, lagoon,
beaches, water parks, exhibition centres and tropical flower world.



Tanjong Entertainment Sdn Bhd ("TESB"), a wholly owned subsidiary of Tanjong,
has entered into an agreement with Au Leisure Investments Pte Ltd to form a 50:
50 joint venture to develop the said resort.



Under this agreement, the joint venture will have an initial issued and paid-up
share capital of EUR5 million, and eventually an enlarged paid-up share capital
of up to EUR30 million.



Also, two German companies to be known as "Tropical Island Management GmbH" and
"Tropical Island Asset Management GmbH" (collectively referred to as the "German
Companies"), both 50% owned by TESB have entered into a conditional purchase and
loan contract with Prof Dr Rolf-Dieter Monning ("Liquidator") for the
acquisition of the assets of CargoLifter AG Group.



Colin Au, who has 30 years of experience and expertise in international leisure
and tourism industries, shall be appointed as the Chief Executive Officer of the
joint venture company, while the position of Chairman and Chief Financial
Officer shall be nominated by Tanjong.



Datuk Khoo, Chairman of Tanjong said, "This project is very much an extension of
Tanjong's existing involvement in the leisure and entertainment business. Over
the years, we have been continuously identifying opportunities for the expansion
of our business in this sector."



"The Tropical Island project therefore, presents an excellent opportunity for
Tanjong to create a new intellectual property in the area of edutainment and
leisure based holiday destinations with tropical island settings with a small
capital outlay," added Datuk Khoo.



It is estimated that the entire project shall incur a total cost of up to
approximately EUR70 million (RM304.5 million) which includes the EUR17.5 million
acquisition costs of the assets of CargoLifter AG Group. The project cost will
be funded through a combination of equity funds, shareholder's advances and bank
borrowings to be secured by the German Companies.



Colin Au said, "We are confident that this project, when completed, will draw in
repeat visitors, especially from Germany and its neighbouring European
countries."



"We plan to feature monthly exhibits of a tropical country or region. As a
start, we hope to work with the Malaysian Tourist Promotion Board to feature
Malaysia with its rich heritage of culture, arts, food, architecture, islands,
resorts and its rainforest. Also, Malaysia's cultural groups, musicians and
dancers will have the opportunity to perform at the Tropical Island," Au
elaborated.



Assuming that planning approvals and building permits are received by the end of
the year, and the commercial agreement is completed, works within the
CargoLifter hangar are expected to commence in the first quarter of 2004, and
operations of the "Tropical Island" are expected to commence in the fourth
quarter of 2004.



A rainforest is envisaged to be at the centre of the island containing trees and
plants from various rainforest zones such as South America, Africa, Asia and
Australia, as well as streams, rivers and waterfalls. In addition, the island
shall encompass a sea with beach and terrace for sun loungers, a water park, a
lagoon, a tropical village and a tropical plant world.



Details of the announcement are available from the Kuala Lumpur Stock Exchange
website at www.klse.com.my and at Tanjong website, www.tanjong.com.my



                                    - ends -



 Issued by Tanjong Public Limited Company. For more information, please contact

   Ms Shirene Lee (tel: [phone]) or Ms Wang Siew Lan (tel: [phone])






                      This information is provided by RNS
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