Post Date 2018.05.11From：FENC
1.Name and nature of the subject matter (e.g.land located at Sublot XX, Lot XX, North District, Taichung City):
(1)Name of the subject matter:
11 pieces of raw land at Xinya Section of Banqiao District in New Taipei City, such as Lot No. 988, 989, 989-1, 1012, 1012-1, 1012-3, 1012-4, 1016, 1017, 1017-1 & 1017-3.
(2)Nature of the subject matter: Residential areas
2.Date of the occurrence of the event:2018/05/11
3.Transaction volume (e.g.XX square meters, equivalent to XX p'ing), unit price, total transaction price:
(1)Land: 12,747 square meters, equivalent to 3,855.97 pings.
(2)Unit price: NT$343,400 per ping
(3)Total transaction price: NT$1,324,139,415
4.Counterparty to the trade and its relationship with the company (if the trading counterpart is a natural person and is not an actual related party of the Company, the name of the trading counterpart is not required to be disclosed):
Trading counterpart:Oriental Institute of Technology(OIT)
Relationship with the company:Same Chairman of Far Eastern Resources Development (FERD) and OIT
5.Where the counterpart to the trade is an actual related party, a public announcement shall also include the reason for choosing the related party as trading counterpart and the identity of the previous owner (including its relationship with the company and the trading counterpart), price of transfer and the date of acquisition:
A.The reason for choosing the trading counterpart: According to campus plan for OIT, OIT scheduled to acquire the aforesaid raw land from FERD.
B.The identity of the previous owner:
Far Eastern Textile Ltd. (renamed Far Eastern New Century Corporation, hereafter referred to as FENC).
C.Relationship with the company :FERD is FENC’s wholly owned subsidiary
Relationship with the trading counterpart:Same Chairman for both parties.
D.The previous price of transfer:N/A
(FENC spun off its holdings of land and transferred such holdings to FERD).
E.The previous date of acquisition:2003/09/02
6.Where a person who owned the property within the past five years has been an actual related person of the company, a public announcement shall also include the dates and prices of acquisition and disposal by the related person and the person’s relationship to the company at those times:N/A
7.Anticipated loss or profit from the disposal (not applicable in cases of acquisition of assets) (where originally deferred, the status or recognition shall be stated and explained): Disposal gain will be approximately NT$124,849,365
8.Terms of delivery or payment (including payment period and monetary amount), restrictive covenants in the contract, and other important stipulations:
(1)Terms of delivery or payment:In accordance with the agreement
(2)Contractual restrictions and other important agreements:
According to Private School Law, OIT’s land purchase shall be subjected to the approval of the Ministry of Education. Therefore, “the letter of commitment to sell from the land owner” and “land sales & purchase agreement” should be submitted to the Ministry of Education for prior approval. The land selling price proposed by the letter will expire on 30 Sep 2018. If the deal fails by then, FERD will need to re-propose its land disposal proposal to its Board of Directors for approval.
9.The manner of deciding on this transaction (such as tender invitation , price comparison, or price negotiation), the reference basis for the decision on price and the decision-making department:
(1)The manner of deciding on this transaction: Price negotiation
(2)The reference basis for the decision on price:
The land evaluation reports were issued by Elite Appraisers Firm, Colliers International, DTZ/Cushman & Wakefield LLP, Sinyi Real Estate Appraisers Firm and CCIS Real Estate Joint Appraisers Firm, respectively.
(3)The decision-making department: Board of Directors
10.Name of the professional appraisal institution and its appraisal amount:
(1)Elite Appraisers Firm: NT$1,353,444,593
(2)Colliers International: NT$1,357,300,560
(3)DTZ/Cushman & Wakefield LLP: NT$1,349,589,500
(4)Sinyi Real Estate Appraisers Firm: NT$1,287,893,145
(5)CCIS Real Estate Joint Appraisers Firm: NT$1,272,469,275
11.Reason for any significant discrepancy with the transaction amount, and opinion of the certifying CPA:N/A
12.Is the appraisal report price a limited price or specific price?:No
13.Has an appraisal report not yet been obtained?:No
14.Reason for an appraisal report not been obtained:N/A
15.Broker and broker's fee:NIL
16.Concrete purpose or use of the acquisition or disposal: Land disposal
17.Do the directors have any objection to the present transaction?:NIL
18.Any other matters that need to be specified:NIL