IOI CORPORATION BERHAD ("IOI CORP" OR THE "COMPANY")

PROPOSED INTERNAL RESTRUCTURING INVOLVING THE PLANTATION AND RESOURCE BASED MANUFACTURING ASSETS AND COMPANIES ("PROPOSED INTERNAL RESTRUCTURING")

1. INTRODUCTION

Pursuant to paragraph 9.19 (5) of the Main Market Listing Requirements of Bursa Securities Berhad, the Board of Directors of IOI Corp wishes to announce that the Company has undertaken an internal restructuring involving its plantation and resource based manufacturing assets and companies. Details of the Proposed Internal Restructuring are set out in Section 2 below.

2. DETAILS OF THE PROPOSED INTERNAL RESTRUCTURING

The Proposed Internal Restructuring involved the following steps.

2.1 TRANSFER OF ASSETS AND COMPANIES

2.1.1 IOI Corp to transfer its entire equity interests in Pan-Century Oleochemicals Sdn Bhd ("PCOC") and Pan-Century Edible Oils Sdn Bhd ("PCEO"), both wholly-owned subsidiaries of IOI Corp, to IOI Oleochemical Industries Berhad ("IOI Oleo") via an execution of a sale and purchase agreement ("SPA") for considerations of RM0.36 billion and RM0.46 billion respectively. Details of the proposed transfer are as follows:-

RM’ Million

Company Consideration

PCOC 361.20

PCEO 463.88

Total 825.08

2.1.2 IOI Oleo to transfer its entire equity interests in the following plantation companies to IOI Corp via an execution of a SPA for a total consideration of RM2.08 billion. Details of the proposed transfer are as follows:-

RM’ Million

Company Consideration

Palmco Plantations (Sabah) Sdn Bhd 406.31

Palmco Properties Sdn Bhd 30.21

Pamol Plantations Sdn Bhd 1,573.57

Unipamol Malaysia Sdn Bhd 70.59

Total 2,080.68

2.1.3 IOI Corp to transfer seven (7) estates located in Peninsular Malaysia and part of Paya Lang estate measuring in total of approximately 15,396.41 hectares and its entire equity interest in IOI Pelita Plantation Sdn Bhd ("IOI Pelita"), a 70% owned subsidiary company, to IOI Plantation Sdn Bhd ("IOI Plantation") via an execution of SPAs for considerations of RM1.02 billion and RM44.32 million respectively. Details of the proposed transfer are as follows:-

Estate Location Land area Consideration (hectare) RM’ Million

Bahau Rompin, District 2,577.39 167.40 of Jempol in

Bt Serampang Mukim and Bkt 2,564.46 194.21 Serampang, District of Ledang in

Kuala Jelei Mukim Jelei and Kepis, 679.26 48.57 District of Jempol and in Negeri Sembilan

Payalang (1st parcel) Mukim 1,355.21 77.92 and , District of in Johor

Regent Mukim Gemencheh, 2,300.86 149.16 District of in Negeri Sembilan

Sagil Mukim Tangkak, District 2,547.02 145.02 of Ledang in Johor

Segamat Mukim Sg Segamat, 1,360.89 87.69 and Pogoh, District of Segamat in Johor

Tambang Mukim Gemas and 2,011.32 146.17 Buloh Kasap, District of Segamat in Johor

15,396.41 1,016.14

Others - 2.31

Total 15,396.41 1,018.45

RM’ Million

Company Consideration

IOI Pelita 44.32

2.1.4 IOI Corp to transfer three (3) estates measuring in total of approximately 7,484.60 hectares and a mill, all located in Sabah to Morisem Sdn Bhd ("Morisem"), a wholly-owned subsidiary of IOI Corp, via an execution of SPAs for a consideration of RM0.44 billion. Details of the proposed transfer are as follows:-

Land area Consideration Estate Location (hectare) RM’ Million

Baturong 1 Sg Tingkayu, Kunak in Sabah 855.60 159.47

Baturong 2 Sg Tingkayu, Kunak in Sabah 5,618.00 131.57

Baturong 3 Sg Tingkayu, Kunak in Sabah 1,011.00 107.29 7,484.60 398.33

Baturong mill - 36.96

Others - 0.82

Total 7,484.60 436.11

2.2 SALIENT TERMS OF THE SPA

The terms of the SPAs are as follows:-

a) The assets and companies shall be acquired by IOI Oleo, IOI Corp, IOI Plantation and Morisem free from all charges, liens and all other claims and encumbrances;

b) The sale and transfer of assets and companies shall be completed on 23 December 2013.

2.3 BASIS OF ARRIVING AT THE TRANSFER CONSIDERATIONS

The transfer considerations were arrived at on a 'willing buyer willing seller' basis based on the revalued net assets after taking into consideration the discounted cash flow method of valuation of the assets and companies.

2.4 IOI CORP GROUP STRUCTURE

IOI Corp Group structure before and after the Proposed Internal Restructuring is depicted in Appendix I of this announcement.

3. SOURCE OF FUNDING

The transfer of the assets and companies will be funded through internally generated funds. However, the transfer of IOI Pelita shall be satisfied via the issuance of shares in IOI Plantation to IOI Corp.

4. RATIONALE

The Proposed Internal Restructuring is to enable IOI Corp Group to streamline the structure of its plantation and resource based manufacturing businesses.

Following from this exercise, the plantation estates and companies belonging to IOI Oleo will be transferred out of the IOI Oleo Group. Going forward the IOI Oleo Group, with the acquisition of PCOC and PCEO, will become a pure resource based manufacturing group.

The transfer of plantation estates from IOI Corp to its wholly-owned plantation companies would streamline the holdings of its plantation estates and enable IOI Corp to become a pure investment holding company. 5. EFFECTS OF THE PROPOSED INTERNAL RESTRUCTURING

5.1 Issued and paid-up share capital

The Proposed Internal Restructuring will not have any effect on the issued and paid- up share capital of IOI Corp.

5.2 Substantial shareholders’ shareholdings

The Proposed Internal Restructuring will not have any effect on the substantial shareholders’ shareholdings in IOI Corp.

5.3 Earnings

The Proposed Internal Restructuring is not expected to have any material impact on the earnings per share of the IOI Corp Group for the financial year ending 30 June 2014.

5.4 Consolidated Net Asset (“NA”) and gearing

The Proposed Internal Restructuring is not expected to have a material effect on the consolidated NA and gearing of IOI Corp Group.

6. DIRECTORS AND MAJOR SHAREHOLDERS’ INTERESTS AND/OR PERSON(S) CONNECTED

None of the Directors, major shareholders and/or person(s) connected with them, has any interest, direct or indirect, in the Proposed Internal Restructuring.

7. APPROVALS REQUIRED

The Proposed Internal Restructuring is not subject to the approval of the shareholders of the Company or any relevant authorities.

8. EXPECTED TIME FRAME FOR COMPLETION

Barring any unforeseen circumstances, the Proposed Internal Restructuring is expected to be completed by 4th quarter of 2013.

9. STATEMENT BY THE BOARD OF DIRECTORS

The Board of Directors of IOI Corp, after having considered the rationale for the Proposed Internal Restructuring, is of the opinion that the Proposed Internal Restructuring is in the best interest of IOI Corp Group.

10. DOCUMENTS AVAILABLE FOR INSPECTION

Copies of the SPAs may be inspected at the registered office of the Company at Two IOI Square, IOI Resort, 62502 Putrajaya, Malaysia during normal office hours from Mondays to Fridays (except public holidays) for a period of three (3) months from the date of this announcement.

This announcement is dated 23 December 2013.

APPENDIX I

Before

IOI Corp

100% 100% 100% 70% 100% 100%

IOI Oleo IOI Morisem IOI Pelita PCOC PCEO 8 Peninsular Plantation estates (inclusive of

Paya Lang estate)

100% + 3 Sabah estates

with 1 mill

Pamol Unipamol Palmco Palmco Plantations Malaysia Sdn Plantations Properties Sdn Bhd Bhd (Sabah) Sdn Sdn Bhd Bhd 70% Pamol Estates (Sabah) Sdn Bhd

100%

Milik

Berganda

Sdn Bhd

After

IOI Corp

100% 100% Part of Paya Lang

100% 100% estates

IOI Oleo Morisem IOI Plantation

70% 7 estates & part of

100% Paya Lang estates 3 Sabah estates IOI Pelita and 1 mill 100%

PCOC PCEO Palmco Pamol Unipamol Palmco Plantations Plantations Malaysia Properties (Sabah) Sdn Sdn Bhd Sdn Bhd Sdn Bhd Bhd

70% Pamol Estates (Sabah) Sdn Bhd

100%

Milik Berganda Sdn Bhd