Page 172 - ar2010

Represented by:

Not later than 1 year 75,306 63,347 Later than 1 year and not later than 2 years 81,720 130,399 Later than 2 years and not later than 5 years 251,706 349,513 Later than 5 years 596,356 329,233

The Group has entered into a contractual agreement with Amanah Raya Berhad (as Trustee for Al-‘Aqar KPJ REIT) and Damansara REIT Managers Sdn Bhd to lease the hospital land and buildings including certain equipment for a period of ffteen years, with an option to renew for another ffteen years subject to terms and conditions as stipulated in the agreement.

Corporate guarantees given for banking facilities (unsecured)

- subsidiaries 2,657 5,716

(a) On 16 December 2010, Maharani Specialist Hospital Sdn Bhd, wholly-owned subsidiary of KPJSB, entered into conditional Sale

and Purchase Agreement (“SPA”) with Property Base Development Sdn Bhd for the proposed acquisition of a piece of freehold land with a partially completed building Lot 2024, Bandar Maharani, Muar for a purchase consideration of RM22.0 million. The acquisition was completed on 12 April 2010.

(b) On 6 January 2010, Kumpulan Perubatan (Johor) Sdn Bhd (“KPJSB”), a wholly-owned subsidiary of the Company entered into

a conditional Share Sale Agreement with Sabah Medical Centre Sdn Bhd for the acquisition of 40.8 million ordinary shares of RM1.00 each representing 51% equity interest in SMC Healthcare Sdn Bhd (“SMCH”) for a cash consideration of RM51.0 million. KPJSB has also entered into a Management Agreement with SMCH for the appointment of KPJSB to manage the existing and the new private hospitals of SMCH. The acquisition was completed on 25 June 2010.

(c) On 31 March 2010, Pasir Gudang Specialist Hospital Sdn Bhd, wholly-owned subsidiary of KPJSB, entered into conditional

Sale and Purchase Agreement (“SPA”) with Johor Land Bhd for the proposed acquisition of a 3.247 acre leasehold land for a purchase consideration of RM7.07 million. The acquisition was completed on 22 April 2010.

(d) On 9 March 2010, the Company proposed to dispose its entire interest in Rumah Sakit Bumi Serpong Damai Building, Kluang

Utama Specialist Hospital Building and Bandar Baru Klang Specialist Hospital Building to Al-‘Aqar KPJ Real Estate Investment Trust (“Al-‘Aqar KPJ REIT”) for a proposed total sale consideration of RM138.77 million to be satisfed partly by cash consideration of RM83.26 million and partly by issuance of 56.64 million new units in Al-‘Aqar at an issue price of RM0.98 per unit to be credited as fully paid-up (“Proposed Disposals”). The proposed disposals are expected to complete by second half of 2011.

(e) On 12 November 2010, the Company proposed to issue Islamic Commercial Papers/Islamic Medium Term Notes (“ICP/MTN”)

of up to RM500 million by Point Zone (M) Sdn Bhd (Point Zone). Point Zone, a 100% owned subsidiary of KPJ, intends to refnance the Company’s existing RM250.0 million ICP/MTN with the balance proceeds to fnance the Group’s capital expenditure requirement related to its expansion plan and working capital requirement. The proposed issuance was approved by Securities Commission on 27 December 2010 and expected to take place in 2011.