1. Introduction

The Board of Directors (“Board”) of the Company wishes to inform that Infront Consulting Group (M) Sdn Bhd (“Infront MY”), a 60% indirect subsidiary of the Company held via Celcom Berhad had on 29 February 2024 filed a Compulsory Winding-Up (“CWU”) petition against Infront SG, a 69% owned subsidiary of Infront MY, in the High Court of the Republic of Singapore (“Court”) pursuant to Section 125(1)(e) of the Insolvency, Restructuring and Dissolution Act 2018, Singapore (“IRDA”).

Due to financial challenges faced by Infront SG, Infront SG has been incurring losses and, amongst others, amounts of SGD187,407.23 and MYR65,254.76 are due and payable by Infront SG to Infront MY. Infront SG is deemed insolvent and unable to pay its debts since it had failed to repay to Infront MY such amounts. Therefore, CWU has been commenced in light of such inability to pay debts of ICSG.

Infront MY has nominated Ms Ellyn Tan Huixian of Mazars Consulting Pte Ltd of 135 Cecil Street, #10-01, Singapore 069536 as the Liquidator of Infront SG. The CWU of Infront SG will be commenced upon the Court’s approval of the CWU application.

2. Information on Infront SG

Infront SG was incorporated in the Republic of Singapore on 5 August 2011 as a private limited company under the Companies Act 1967, Singapore. The issued share capital of Infront SG is SGD100,000.00 comprising 100,000 ordinary shares.

Infront SG is principally engaged in software consultancy services as well as other information technology and computer services. Infront SG does not have any subsidiary or associated company and is not a major subsidiary of CDB.

3. Effects of the CWU

The total cost of investment in Infront SG is RM172,406.00. As at the date of this announcement, Infront MY has made full impairment of such cost. The CWU is not expected to have any material financial and operational impact for the financial year ending 31 December 2024. The Company is not expected to have any material losses arising from the CWU.

4. Steps taken or proposed to be taken in respect of the winding-up proceedings

Upon obtaining the Court’s approval for the CWU and once the liquidator is appointed, the liquidator will proceed to realise the assets of Infront SG for distribution to its creditors, including Infront MY.

5. Approvals required

The CWU does not require the approval of the shareholders of CDB or any other relevant authority except for the Court for the CWU.

The Company will make further announcements as and when there are material developments on the above matter.

This announcement is dated 29 February 2024.