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CONTENTS

PAGE

PART 1 – DIRECTORS’ LETTER

1. INTRODUCTION ......................................................................................................... 1

2. DETAILS OF THE PROPOSED RESCUE SCHEME ......................................................... 4

2.1 Proposed Internal Restructuring.............................................................................. 4

2.2 Proposed Warrants Exchange................................................................................. 5
2.3 Proposed Debt Restructuring.................................................................................. 5
2.4 Proposed EEDB/KAB Acquisitions .......................................................................... 9
2.5 Proposed KSUH Listing ....................................................................................... 16
2.6 Proposed MBO ................................................................................................... 16
2.7 Inter-Conditionality.............................................................................................. 18

3. RATIONALE FOR THE PROPOSED RESCUE SCHEME ................................................ 18

4. RISK FACTORS ......................................................................................................... 19

5. EFFECTS OF THE PROPOSED RESCUE SCHEME ....................................................... 20

6. CONDITIONS FOR THE PROPOSED RESCUE SCHEME.............................................. 25

7. DIRECTORS’ AND SUBSTANTIAL SHAREHOLDERS’ INTERESTS............................. 26

8. DIRECTORS’ RECOMMENDATION ........................................................................... 26

9. COURT-CONVENED MEETINGS................................................................................ 26

10. EXTRAORDINARY GENERAL MEETING.................................................................... 27

11. WARRANTHOLDERS’ MEETING ............................................................................... 27

12. FURTHER INFORMATION ......................................................................................... 27

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PART 2 - APPENDICES

I INFORMATION ON MPI ............................................................................................ 28

II INFORMATION ON KSUH.......................................................................................... 71

III INFORMATION ON EEDB.......................................................................................... 73

IV DIRECTORS’ REPORT ON EEDB ............................................................................... 78

V INFORMATION ON KAB............................................................................................ 79

VI DIRECTORS’ REPORT ON KAB ................................................................................. 82

VII INFORMATION ON BGH............................................................................................ 83

VIII ACCOUNTANTS’ REPORT ON EEDB ......................................................................... 84

IX ACCOUNTANTS’ REPORT ON KAB ........................................................................... 98

X PROFORMA CONSOLIDATED BALANCE SHEETS OF MPI/KSUH

AS AT 31 DECEMBER 1999 AND THE REPORTING ACCOUNTANTS’
LETTER THEREON .................................................................................................. 108

XI VALUERS’ LETTER.................................................................................................. 114

XII FURTHER INFORMATION ....................................................................................... 120

EXTRACTS OF RESTRAINING ORDERS FROM

THE HIGH COURT OF MALAYA .................................................................................. 123

NOTICE OF EXTRAORDINARY GENERAL MEETING .......................................................... 139

NOTICE OF WARRANTHOLDERS’ MEETING...................................................................... 141

NOTICE OF COURT-CONVENED MEETINGS ...................................................................... 142

FORM OF PROXY FOR EXTRAORDINARY GENERAL MEETING............................. ENCLOSED

FORM OF PROXY FOR WARRANTHOLDERS’ MEETING......................................... ENCLOSED

FORMS OF PROXY FOR COURT-CONVENED MEETINGS ....................................... ENCLOSED

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