On behalf of the Board of Directors of Uzma (“Board”), Mercury Securities Sdn Bhd (“Mercury Securities”) wishes to announce that Tenggara Analisis Sdn Bhd (“Tenggara”), a wholly-owned subsidiary of Uzma, had on 29 January 2019 entered into a conditional share sale agreement (“SSA”) with Nasri Nasrun Ventures Sdn Bhd (“NNVSB” or the “Vendor”) to acquire 694,350 ordinary shares in Setegap Ventures Petroleum Sdn Bhd (“SVP”) (“Sale Shares”), representing 15% equity interest in SVP, for a cash consideration of RM36 million (“Purchase Consideration”) (“Proposed Acquisition”).

UNLIKE KPS WHICH BOUGHT AN ENTIRE NEW UNPROVEN COMPANY UZMA IS BUYING A TRIED AND TESTED COMPANY WHICH GAVE HIGH PROFIT TO THE GROUP

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PROPOSED ACQUISITION 2.1 Details of the Proposed Acquisition SVP is currently a 49%-owned joint venture entity of Tenggara. Upon completion of the Proposed Acquisition, Tenggara will hold a total of 64% equity interest in SVP. Thus, the Proposed Acquisition represents a strategic move to allow Uzma to exercise further control over the operations and business direction of SVP. SVP is principally involved in the provision of support services to the oil and gas (“O&G”) industry such as well pumping and coil tubing. Such services are complementary to the existing services offering of Uzma and its subsidiaries (“Uzma Group” or the “Group”) such as geoscience and reservoir engineering, drilling as well as project and operation services for the O&G industry. The Group may be able to further integrate the business operations of SVP with its own and extract synergistic benefits such as cost reduction through the pooling of resources and streamlining of operations. SVP has been contributing positively to the Group’s earnings since Tenggara’s acquisition of 30.02% and 18.98% equity interest in SVP back in January 2012 and January 2015 respectively. For the 18-month financial period ended (“FPE”) 30 June 2018(1), SVP contributed RM10.39 million to the Group’s profit before tax (“PBT”). The increase in equity ownership of SVP will allow the Group to consolidate a higher percentage of SVP’s earnings.