Listing Detail:
Listing Sought: Main Market
Issue Price: RM 1.16
Par Value: RM 1.00

Dates:
Offer Period Open: 21/11/2012
Offer Period Close: 06/12/2012
Tentative listing date: 18/12/2012

Number of shares:
Offer for Sale: 13,493,454
Public Issue: 25,000,000

• 4,510,000 to eligible employees
• 15,625,000 to Bumiputra investors
• 4,865,000 to Malaysia public

Stock Code: ELKDESA

Company Background

ELK-Desa Resources Group, through its wholly-owned subsidiary, ELK-Desa Capital, is primarily involved in the business of HP financing for used motor vehicles. The Group is also involved in selling general insurance policies as an insurance agent and trading of used motor vehicles through ELK-Desa Capital's two (2) wholly-owned subsidiary companies, ELK-Desa Risk Agency and ELK-Desa Marketing respectively.

a) HP Financing for Used Motor Vehicles
ELK-Desa Resources Group's business is focused on the provision of HP financing for used motor vehicles. For the past four (4) financial year from 31 March 2009 to 31 March 2012 and five months FPE 31 August 2012, the HP financing business has contributed over ninety percent to ELK-Desa Resources Group's overall revenue. The revenue from this business comprises HP interest income, handling and processing fees and overdue and service charges

Currently, ELK-Desa Resources Group, through ELK-Desa Capital, operates out of two financing centers in Kuala Lumpur and Klang, Selangor in Malaysia.

b) Insurance Agency
ELK-Desa Resources Group's secondary business is acting as an insurance agent in selling general insurance policies. ELK-Desa Resources Group's insurance business, via ELK-Desa Risk Agency, contributes less than ten percent to the Group's PAT for the past four financial years from 31 March 2009 to 31 March 2012 and five months FPE 31 August 2012 and is considered an ancillary product offering complementing its HP financing business.

c) Trading of Used Motor Vehicles
EK-Desa Resources Group, through ELK-Desa Marketing, is involved in the trading of used motor vehicles. It not only refers new hirers to the Group's HP financing business, but also helps in disposing a portion of the repossessed used motor vehicles from its immediate holding company, ELK-Desa Capital's HP operations. Although the income contribution is not substantial, it complements the HP financing activities of the entire Group.

Revenue Stream

The revenue of the ELK-Desa Resources Group is mainly generated from its HP financing business for used motor vehicles. HP interest income earned by the Group represented 82% of total revenue in FYE 2009, 80% in FYE 2010, 78% in FYE 2011, 80% in FYE 31 March 2012 and 79% in FPE 31 August 2012.

Bursa Announcement:

INITIAL PUBLIC OFFERING IN CONJUNCTION WITH OUR LISTING ON THE MAIN MARKET OF BURSA MALAYSIA SECURITIES BERHAD COMPRISING:

(I) NON-RENOUNCEABLE RESTRICTED OFFER FOR SALE OF 13,493,454 ORDINARY SHARES OF RM1.00 EACH IN ELK-DESA RESOURCES BERHAD (“ELK-DESA RESOURCES”) TO THE SHAREHOLDERS OF UNICO-DESA PLANTATIONS BERHAD (“UNICO-DESA”) ON A PRO RATA BASIS AS AT 5.00 P.M. ON 19 NOVEMBER 2012 (“ENTITLEMENT DATE”) PURSUANT TO THE LISTING OF ELK-DESA RESOURCES; AND

(II) PUBLIC ISSUE OF 25,000,000 NEW ELK-DESA RESOURCES’ SHARES (“PUBLIC ISSUE SHARE(S)”), COMPRISING:

(A) 4,510,000 PUBLIC ISSUE SHARES TO ELIGIBLE EMPLOYEES (EXCLUDING DIRECTORS OF UNICO-DESA AND ELK-DESA RESOURCES) OF UNICO-DESA,
ELK-DESA RESOURCES AND THE SUBSIDIARY COMPANIES OF ELK-DESA RESOURCES;

(B) 15,625,000 PUBLIC ISSUE SHARES TO BUMIPUTERA INVESTORS TO BE APPROVED BY THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY; AND

(C) 4,865,000 PUBLIC ISSUE SHARES TO THE MALAYSIAN PUBLIC

AT AN OFFER/ISSUE PRICE OF RM1.16 PER SHARE PAYABLE IN FULL UPON APPLICATION