Referring to the memorandum of understanding (MOU) signed last year for Subaru compact SUV business, Tan Chong International (HKG:0693) (Tan Chong) said that the effective period of the MOU expires on 5 January 2012 and since more time than expected is required for the parties to finalize the details of the project before signing of a definite agreements could be concluded, the parties are now negotiating an extension of the effective period of the MOU and shall further publish an announcement once any supplemental or other document is signed.

In July 2011, TC Subaru Sdn Bhd (TCS) - a subsidiary of Tan Chong, Fuji Heavy Industries Limited - an independent third party of Tan Chong, and Tan Chong Motor Assemblies Sdn Bhd (TCMA) - a connected person of Tan Chong, entered into the MOU regarding certain arrangements between the parties in respect of manufacturing, assembling and distribution of Subaru compact SUVs (CKD products) in Malaysia, Indonesia and Thailand (the Territory). The term of the project was expected to commence on the effective date of the definitive agreement and expire on 31 December 2015.