Reference is made to the announcement by BHB dated 22 October 2015.

On behalf of the Board of Directors of BHB (“Board”), Affin Hwang Investment Bank Berhad (“Affin Hwang IB”) and Hong Leong Investment Bank Berhad (“HLIB”) wish to announce that the Board, after careful deliberation, have decided to accept the Offer, subject to the execution of the definitive agreement(s) for the proposed disposal of its 49% equity interest in BACH (“Proposed Disposal”).

Affin Hwang IB and HLIB have been appointed by BHB as the Joint Principal Advisers for the Proposed Disposal.

Further information on the Proposed Disposal will be announced upon finalisation and execution of the definitive agreement(s).

This announcement is dated 27 October 2015.

1. Introduction

We refer to the announcement dated 11 May 2015 in relation to the execution of the New Catering Agreements (“NCAs”) between Brahim’s Airline Catering Sdn Bhd (“BAC”), an indirect 70%-owned subsidiary of BHB, and Malaysia Airlines Berhad (“MAB”).

By an Extension Agreement dated 1 September 2015 entered into between BAC and MAB the New Terms Commencement Date for the NCAs was extended to 15 September 2015.

The Company wishes to announce that following the execution of the NCAs, Brahim’s Airline Catering Holdings Sdn Bhd (“BACH”), a wholly-owned subsidiary of BHB and the holding company of BAC, had on 14 September 2015 entered into the following agreements:

(a) Termination agreement for the termination of the existing shareholders agreement (“ESA”) between Malaysian Airline System Berhad (“MAS”), BACH and BAC (“TESA”); and

(b) Shareholders agreement between BAC, BACH and MAB (“SHA”) which regulates the relationship between BACH and MAB as shareholders of BAC.

The TESA and SHA are collectively referred to as the “BACH Ancillary Agreements”.

In addition to the BACH Ancillary Agreements, BAC has also on 14 September 2015 entered into the following agreements:

(a) Termination agreement for the termination of the existing catering agreement between BAC and with MAS (“TECA”);

(b) Termination agreement for the termination of the existing tenancy agreement (“ETA”) between BAC and MAS (“TETA”) for the use of the premises provided by MAS to BAC for BAC’s kitchen and other facilities (‘Premises”); and

(c) Tenancy Agreement (“TA”) between BAC and MAB for the provision of the Premises for BAC‘s kitchen and other facilities.

The TECA, TETA and TA are collectively referred to as the “BAC Ancillary Agreements”

With the execution of the BACH Ancillary Agreements and BAC Ancillary Agreements BAC and MAB have agreed that the New Terms Commencement Date for the NCAs is 15 September 2015.

2. Rationale

The execution of the TESA, TECA and TETA and SHA are incidental to the NCAs whereby the airline business previously undertaken by MAS is now being taken over by MAB in view of the MAS Restructuring Plan pursuant to the Malaysian Airline System (Administration) Act 2015 (“Act”).

The TA is entered into following the transfer of the assets of MAS including the Premises to MAB pursuant to the Act.

The SHA has similar terms as the ESA, which inter alia provides for agreement between the parties on composition of the Board of Directors, reserved matters which require the approval of both parties, deadlock provisions and pre-emption clauses. The TA is principally on the same terms as the ETA.

3. Effect of the BACH Ancillary Agreements and BAC Ancillary Agreements

The execution of the BACH Ancillary Agreements and BAC Ancillary Agreements does not have any effect to the share capital, substantial shareholders’ shareholdings, earnings per share, net assets and gearing level of the Company.

4. Directors’ Statement

The Board of Directors of BHB, having considered the rationale and the terms of the BACH Ancillary Agreements and BAC Ancillary Agreements, is of the opinion that the execution of the BACH Ancillary Agreements and BAC Ancillary Agreements are in the best interest of the Company.

This announcement is dated 17 September 2015.

Details of changes

Currency: Malaysian Ringgit (MYR)

Acquisition of Shares

Direct Interest