BERNAS TO BUY BACK PART OF SHARES OWNED BY HONG KONG COMPANY

KOTA BAHARU (Malaysia), July 30 (Bernama) -- Malaysian company Padiberas
Nasional Bhd (Bernas) plans to buy back part of the 31 percent equity shares
held by Hong Kong company, Wang Tak Co. Ltd. (Wang Tak).

Minister of International Trade and Industry, Mustapa Mohamed said Bernas
had personally relayed its intention to buy back the shares from the foreign
company as a move in keeping with the company's role as the national rice
supplier.

"This, however, does not mean that the government intends to restrict the
entry of foreign investment. Infact, the government encourages the entry of
foreign investments," he said.

As for Bernas issue, it was a normal process when it was listed on the stock
exchange, and a specific party had bought the shares and there were no
restrictions on it by the government as the sale was in accordance with the
laws, he told reporters after officiating the SME Bank Entrepreneurs Expo here
today.

He said this when asked to comment on the 31 percent equity held by Wang Tak
in Bernas, and the concerns raised by several parties on the major equity
ownership by a foreign company in the country's national rice supplier company.

Bernas in a statement Wednesday had clarified that its position was not in
jeopardy with the foreign equity ownership as Wang Tak's purchase of the shares,
through the open market, did not involve any structural change to the control
and management of Bernas.

Following Bernas listing on the Bursa Malaysia's Main Board in August 1997,
the management and direction of the company came under full control of the
Bernas Board of Directors which is fairly represented by the major and minor
shareholders of the company.

They include the Malaysian Government as the special shareholder represented
through the Ministry of Finance and the Ministry of Agriculture and Agro Based
Industries.

This is stated in the terms and conditions of the Company Memorandum and
Articles as well as the privatisation agreement signed between Bernas and the
government in 1996.

Article 3 (1) states that any merger which can involve the transfer of power
or management of the company to any individuals or foreign firms or any foreign
controlled firm, is not allowed at all.

Mustapa, however, did not say when Bernas will be buying back the
shares.

He also called on all parties not to worry, saying the management of
Bernas will not be affected including changes to the price of rice.

Mustapa said the government had the Golden Share, giving it the absolute
power to decide the direction of Bernas.

"This means any action by Bernas will need the approval of the government
before it is undertaken.

"It also covers the fixing of rice price in the market, and this will not
change even if a foreign company owns 31 percent equity in Bernas.
"Without the government's agreement, the action (increasing the price of
rice) cannot be taken by Bernas," he said.
--BERNAMA