We refer to your letter dated 27 August 2018 (IQL-27082018-00001) from Bursa Malaysia Securities Berhad (“Bursa Securities”) regarding the sharp rise in price of Watta’s shares (“Trading Activity”).
The Board of Directors of Watta (“Board”) wishes to respond to the following queries raised by Bursa Securities in accordance with Paragraph 9.11 of the Main Market Listing Requirements (“LR”), after making due enquiries with its Directors, Major Shareholders and such other relevant persons:-
1. Whether there is any corporate development relating to your Group’s business and affairs that has not been previously announced that may account for the trading activity including those in the stage of negotiation/discussion. If yes, kindly provide the details including status of the corporate development to enable investors to make informed investment decisions.
The Company is not aware of any corporate development relating to Watta and its subsidiaries (“Watta Group”) business and affairs that has not been previously announced that may account for the unusual market activity including those in the stage of negotiation/discussion.
2. Whether there is any rumour or report concerning the business and affairs of the Group that may account for the trading activity and in this respect, you are required to comply with Paragraphs 9.09 and 9.10 of Bursa Securities LR.
The Company has been informed by Dato’ Lee Foo San (“Dato’ Lee”), the Deputy Group Executive Chairman and Chief Executive Officer and a major shareholder of Watta, that he is not aware of any corporate developments of Watta at this juncture that may account for the Trading Activity. He further informed that he was exploring certain corporate proposals previously which had been aborted.
Save as disclosed above, the Company is not aware of any rumour or report concerning the business and affairs of Watta that may account for the Trading Activity.
3. Whether you are aware of any other possible explanation to account for the trading activity.
Save as disclose in item 2 above, the Company is not aware of any other possible explanation to account for the Trading Activity.
4. Whether you are in compliance with the Bursa Securities LR, in particular Paragraph 9.03 of the Bursa securities LR on immediate disclosure obligations.
The Company is in compliance with Bursa Securities LR especially Paragraph 9.03 on immediate disclosure obligations.
The Board notes the increase in the market prices of Watta shares over the last few days. The Board wishes to advise shareholders to trade with caution and consult their stock brokers/ advisers.
The Company will make the necessary announcements on Bursa Securities if there is any material development in compliance with the LR.
This announcement is dated 28 August 2018.