Gallant Venture : Dilution Of Shareholding Interest In PT Indomobil Sukses Internasional Tbk (Completion)

GALLANT VENTURE LTD

Registration Number: 200303179Z

3 HarbourFront Place

#16-01 HarbourFront Tower Two Singapore 099254

Tel [phone]

Fax [phone] www.gallantventure.com

DILUTION OF SHAREHOLDING INTEREST IN

PT INDOMOBIL SUKSES INTERNASIONAL TBK ("IMAS")

FOLLOWING COMPLETION OF THE IMAS RIGHTS ISSUE

Unless otherwise defined, all capitalised terms used in this announcement shall bear the meaning as ascribed to them in the circular dated 23 July 2020 issued by Gallant Venture Ltd. to its shareholders, in relation to the potential dilution of shareholding interest in PT Indomobil Sukses Internasional Tbk (the "Circular").

1. Introduction
   The Board of Directors (the "Board") of Gallant Venture Ltd. (the "Company" or "GV") refers to the Circular and the EGM of the Company held on 7 August 2020.
   The Board wishes to announce that the IMAS Rights Issue has been completed. This announcement is to provide an update based on announcements by IMAS following completion of the IMAS Rights Issue.
2. Shareholding of Company in IMAS
   Prior to the IMAS Rights Issue, the Company held 1,976,765,774 shares in IMAS, representing approximately 71.49% of IMAS' then existing issued and fully-paid shares of 2,765,278,412 shares.
   The maximum total number of 1,229,012,627 IMAS Rights Shares were issued under the IMAS Rights Issue. Accordingly, following completion of the IMAS Rights Issue, the total number of issued shares in IMAS has increased to 3,994,291,039 shares.
   As stated in the Circular, the Company did not subscribe for its proportionate entitlement of 878,562,566 IMAS Rights Shares. Accordingly, the Company continues to hold 1,976,765,774 shares in IMAS, which now represents approximately 49.49% of IMAS' existing issued and fully- paid shares.
3. Deconsolidation of IMAS
   As stated in the Company's announcement dated 11 August 2020 (the "1H2020 Announcement") on the GV Group's unaudited results for the six-month period ended 30 June 2020 ("1H2020") , the GV Group has, as required by Singapore Financial Reporting Standards (International) 10 Consolidated Financial Statements, deconsolidated IMAS in June 2020 due to loss of control to govern its financial and operating policies while retaining only significant influence as a result of loss of power to cast majority of votes at IMAS' Board level notwithstanding that the IMAS Rights Issue had not been completed then. The deconsolidation involved de-recognition of the assets and liabilities of IMAS, goodwill and intangible assets related to the acquisition of IMAS and recognition of reserves previously accounted in the GV Group's comprehensive losses. The financial impact of the deconsolidation was a net loss of S$595.7 million which was recognised in 1H2020.

Shareholders and investors should note the impact of the deconsolidation arising from IMAS ceasing to be a subsidiary of the GV Group as a result of the IMAS Rights Issue as set out in the 1H2020 Announcement.

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4. Additional Information

On 24 August 2020, IMAS also announced that PT Tritunggal Intipermata, a Salim Group company holding 18.17% of IMAS' issued and fully-paid shares, had subscribed for its pro rata entitlement of 223,338,511 IMAS Rights Shares and following completion of the IMAS Rights Issue, PT Tritunggal Intipermata continues to hold 18.17% of IMAS' issued and fully-paid shares.

By Order of the Board

GALLANT VENTURE LTD.

Choo Kok Kiong

Executive Director and Company Secretary

25 August 2020

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