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2.3 Nature of Recurrent Related Party Transactions
The Group and the Company are principally engaged in the production, packaging, marketing and
distribution of beverages, primarily alcoholic.
It is envisaged that in the ordinary course of business of the Group, transactions of a revenue or trading
nature between the Group and the Related Parties are likely to occur with some degree of frequency which
are necessary for our day-to-day operations.
The Group had entered into the following recurrent transactions with the HEINEKEN Group for the period
from the last AGM until 28 February 2017, as detailed below and is now seeking a mandate from its
shareholders to allow the Group to enter into recurrent related party transcations with the HEINEKEN
Group, which shall include, but not limited to the following:
Nature of Transactions
with the HEINEKEN
Group
Estimated
aggregate value
as disclosed in
the Circular to
Shareholders
dated
3 November 2015
(RM’000)
Actual value
transacted since
last
AGM till
28 February 2017
(RM’000)
Proposed
Shareholders’
Mandate on
the following
transactions with
the HEINEKEN
Group
Estimated
aggregate
value from
53rd AGM to
the next AGM
(RM’000)
1.
Purchase of
manufacturing and
marketing materials
from HEINEKEN Group
30,000
23,330
Purchase of
beverage products,
manufacturing
materials and
marketing materials
from the HEINEKEN
Group
31,200
(Note 2)
2.
Purchase of beverage
products from
HEINEKEN Group
6,000
2,021
3.
Fees paid/payable
to HEINEKEN Group
for engineering and
technical services
1,500
2,793
(Note 1)
Fees paid /
payable to the
HEINEKEN Group for
professional services
which include
engineering and
technical, marketing
and advertising,
procurement,
advisory support
and other support
services
13,800
(Note 2)
4.
Fees payable to
HEINEKEN Group
for professional
services which include
procurement services,
advisory support
services and other
support services
3,000
3,354
(Note 1)
5.
Royalties paid/payable
to HEINEKEN Group
for license to brew
Heineken Beer, Tiger
Beer, Anchor Smooth
and Anchor Strong
Beer
42,000
47,500
(Note 1)
Royalties paid /
payable to the
HEINEKEN Group
for license to brew
HEINEKEN Group
trademark-owned
beer
43,200
6.
Fees received/
receivable from
HEINEKEN Group
for marketing and
advertising services
27,000
39,174
(Note 1)
Fees received /
receivable from the
HEINEKEN Group for
professional services
which include
market research
and analysis, trade
and marketing
advisory, innovation
development and
other support
services
31,200
7.
Sale of beverage
products to
HEINEKEN Group
6,000
-
Sale of beverage
products to the
HEINEKEN Group
20,000
Total
115,500
118,172
139,400