INTRODUCTION

The Board of Directors (“Board”) ofSILK Holdings Bhd (“SHB”) would like to announce that SHB has completed an agreement with Jasa Merin (Malaysia) Sdn Bhd (“JMSB”) to acquire Jasa Merin (Labuan) PLC (“JML”) a 100% owned subsidiary of JMSB.  JMSB in turn is 70% owned by SHB.

The purpose of this acquisition is to facilitate a minor re-organisation of JML within the SHB’s Group.  JML will subsequently be utilized to facilitate the Group’s entry into the marine logistics sector, especially for liquid bulk products.  This is separate from the current involvement of JMSB, with its Offshore Support Vessels (“OSV”) business, serving the upstream segment of the oil and gas industry.

DETAILS OF THE ACQUISITION

JML’s entire paid-up equity capital of US$25,000 will be acquired by SHB for a consideration of RM100,000.

RISK FACTORS

The Board does not foresee any material risk pursuant to the acquisition in view that JML is a dormant company.

APPROVALS REQUIRED

The Acquisition is not conditional upon any other proposals undertaken or to be undertaken by the Company.

FINANCIAL EFFECTS

The acquisition is not expected to have any effect on the share capital and shareholding structure of SHB.

DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS

None of the Directors or major shareholders or persons connected to the Directors or major shareholders has any direct or indirect interest in the Acquisition.

DIRECTORS’ STATEMENT

The Board of SHB having considered all aspects of the Acquisition (including but not limited to the rationale for the Acquisition and the risk factors relating to the Acquisition), is of the opinion that the Acquisition is in the best interest of the SHB Group.

Dated this 1st March 2016