2. Restructuring under the first agreement
GPA
GPA owns 100% GPA transfers land to be
of GPH satisfied by issue of
shares in GPH
GPH
Restructuring under the second agreement
GPA Bumiputra company
GPA transfers its land to
GPH, to be satisfied by
GPA now shares and cash in GPH Bumiputra
owns only company now owns
70% of GPH 30% of GPH
GPH
Section 15A exemption will apply only if GPA holds 90% or more of the shares of GPH. If 30% of the
shares of GPH are to be divested to a Bumiputra company, then GPA will only hold 70%. GPA therefore
will not qualify for exemption, by the sheer fact of complying with the Foreign Investment Committee’s
requirement.