We refer to the earlier announcements dated 1 June 2016 and 30 August 2016 in relation to the Proposed Disposal wherein SHB and WZSB (collectively referred to as the “Parties”) had entered into a heads of agreement dated 1 June 2016 in relation to the Proposed Disposal (“HOA”).

On behalf of the Board of Directors of SHB (“Board”), Affin Hwang Investment Bank (“Affin Hwang IB”) wishes to announce the following:

• after the signing of the HOA, WZSB had, in accordance with the terms of the HOA proceeded to conduct a due diligence exercise on SILK and its subsidiary company, Manfaat Tetap Sdn Bhd (“Due Diligence Exercise”). SHB was informed by WZSB on 16 August 2016, that WZSB did not require satisfactory due diligence to be a condition precedent in the definitive share sale agreement in relation to the Proposed Disposal (“SSA”); and

• concurrent with the Due Diligence Exercise, the Parties had also proceeded to negotiate in good faith on the terms of the SSA.

Further to the above, Affin Hwang IB, on behalf of the Board, wishes to announce that the Parties had on 23 September 2016, mutually agreed, by way of letters dated 23 September 2016 to terminate the HOA (“Letters”) with immediate effect without any legal and financial recourse against each other as they have been unable to mutually agree on the final terms of the SSA.

The termination of the HOA is not expected to have any material effect on the earnings per share and net assets per share of the Company for the financial year ending 31 December 2016.

A copy of the Letters will be made available for inspection during normal business hours at SHB’s registered office at Level 22, Axiata Tower, No. 9 Jalan Stesen Sentral 5, Kuala Lumpur Sentral, 50470 Kuala Lumpur from Mondays to Fridays (except public holidays) for a period of 3 months from the date of this announcement.

This announcement is dated 23 September 2016.