THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION If you are in any doubt as to the next course of action you should take, you should consult your stockbroker, bank manager, solicitor, accountant or other professional adviser immediately. Bursa Malaysia Securities Berhad takes no responsibility for the contents of this Circular, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents in this Circular. PERAK CORPORATION BERHAD Registration No.: 199101000605 (210915-U) (Incorporated in Malaysia) CIRCULAR TO SHAREHOLDERS in relation to the PROPOSED DISPOSAL BY PCB DEVELOPMENT SDN BHD, A WHOLLY-OWNED SUBSIDIARY OF PERAK CORPORATION BERHAD, OF FOUR (4) PIECES OF VACANT COMMERCIAL LAND AND ONE (1) PIECE OF VACANT RESIDENTIAL LAND ALL SITUATED AT MUKIM HULU KINTA, DAERAH KINTA, PERAK DARUL RIDZUAN TO PERTUBUHAN KESELAMATAN SOSIAL FOR A TOTAL CASH CONSIDERATION OF RM78,679,531.26 (“PROPOSED DISPOSAL OF PROPERTIES”) AND NOTICE OF EXTRAORDINARY GENERAL MEETING The Extraordinary General Meeting (“EGM”) of Perak Corporation Berhad (“Perak Corp”) will be held fully virtual through live streaming from the broadcast venue at Board Room (Tingkat 1), Casuarina @ Meru Hotel, No. 1-C, Jalan Meru Casuarina, Bandar Meru Raya, 30020 Ipoh, Perak Darul Ridzuan on Tuesday, 8 June 2021 at 11.00 a.m. via Remote Participation and Voting facilities which are available on Tricor Investor & Issuing House Services Sdn Bhd’s (“Tricor”) TIIH online website at https://tiih.online. Notice of the EGM together with the Form of Proxy in respect of the EGM are available from Perak Corp’s website at www.perakcorp.com.my. The Form of Proxy should be deposited at Tricor’s office at Unit 32-01, Level 32, Tower A, Vertical Business Suite, Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur, or alternatively, the Customer Service Centre at Unit G-3, Ground Floor, Vertical Podium, Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur, or by electronic lodgement via TIIH Online website at https://tiih.online no later than Sunday, 6 June 2021 at 11.00 a.m.. For electronic lodgement, please follow the procedures as set out in the Administrative Guide. Last date and time for lodging of the Form of Proxy : Sunday, 6 June 2021 at 11.00 a.m. Date and time of the EGM : Tuesday, 8 June 2021 at 11.00 a.m. This Circular is dated 24 May 2021 This page is intentionally left blank. DEFINITIONS Unless otherwise indicated, the following abbreviations shall apply throughout this Circular:- Act - Companies Act 2016, as amended from time to time including any re- enactment thereof Board - Board of Directors of Perak Corp Bursa Malaysia - Bursa Malaysia Securities Berhad [Registration No.: 200301033577 (635998-W)] Circular - This circular to the shareholders of Perak Corp dated 24 May 2021 Disposal Consideration - Total cash consideration of RM78,679,531.26 for the Proposed Disposal of Properties Director(s) - Shall have the meaning given in Section 2(1) of the Capital Markets and Services Act 2007 and includes any person who is or was within the preceding 6 months of the date on which the terms of the transaction were agreed upon, a director of Perak Corp (or its subsidiary or holding company) or a chief executive of Perak Corp (or its subsidiary or holding company) EGM - Extraordinary General Meeting Listing Requirements - Main Market Listing Requirements of Bursa Malaysia LPD - 12 May 2021, being the latest practical date prior to the printing of this Circular NBV - Net Book Value PCB Development - PCB Development Sdn Bhd [Registration No.: 199701029539 (445038-U)] a wholly-owned subsidiary company of Perak Corp Perak Corp or our - Perak Corporation Berhad [Registration No.: 199101000605 (210915-U)] Company Perak Corp Group or our - Perak Corp and its subsidiaries, collectively Group PERKESO - Pertubuhan Keselamatan Sosial Pihak Berkuasa - Perak State Government PKNPk - Perbadanan Kemajuan Negeri Perak, holding corporation of Perak Corp PN 17 - Practice Note 17 of the Listing Requirements Properties - Four (4) pieces of vacant commercial land and one (1) piece of vacant residential land all situated at Mukim Hulu Kinta, Daerah Kinta, Perak Darul Ridzuan Proposed Disposal of - Proposed disposal by PCB Development of the Properties to PERKESO for Properties the Disposal Consideration PRP - Proposed regularisation plan to be implemented by Perak Corp as per PN 17 requirement of Bursa Malaysia PSOA - Proposed scheme of arrangement and compromise pursuant to Sections 366, 368, 369 and other relevant provisions of the Act between Perak Corp and/or PCB Development and its Scheme Creditors, in respect of the amounts owing to the Scheme Creditors as at the cut-off date on 30 June 2020 i DEFINITIONS (cont’d) Scheme Creditors - Consisting of creditors of Perak Corp and PCB Development, other than financial institutions, whose debt owing are not secured by any security facility that are owed to, or may potentially have a claim against Perak Corp and PCB Development, up to the cut-off date on 30 June 2020 SPAs - Inter-conditional sale and purchase agreements entered into between PCB Development and PERKESO on 17 December 2020 in relation to the Proposed Disposal of Properties Valuation Certificate - Valuation certificate dated 5 March 2021 prepared by the Valuer on the Properties Valuer - Messrs Suleiman & Co Property Consultants Sdn Bhd, an independent firm of registered valuers Words denoting the singular shall, where applicable, include the plural and vice versa and words denoting the masculine gender shall, where applicable, include the feminine and neuter genders and vice versa. Any reference to persons shall include corporations, unless otherwise specified. Any reference in this Circular to any enactments, rules, regulations or rules of the stock exchange is a reference to such enactments, rules, regulations or rules of the stock exchange currently in force and as may be amended from time to time and any re-enactment thereof. Any reference to a time of day in this Circular shall be a reference to Malaysian time, unless otherwise stated. ii This page is intentionally left blank. iii TABLE OF CONTENTS LETTER TO SHAREHOLDERS IN RELATION TO THE PROPOSED DISPOSAL CONTAINING: - SECTION PAGE 1. INTRODUCTION 1 2. DETAILS OF THE PROPOSED DISPOSAL 2 3. BASIS AND JUSTIFICATION FOR THE PROPOSED DISPOSAL 5 4. RATIONALE FOR THE PROPOSED DISPOSAL 7 5. UTILISATION OF PROCEEDS 9 6. RISK OF THE PROPOSED DISPOSAL 9 7. EFFECTS OF THE PROPOSED DISPOSAL 9 8. APPROVALS REQUIRED 11 9. CONDITIONALITY OF THE PROPOSED DISPOSAL 11 10. ESTIMATED TIME FRAME FOR COMPLETION 12 11. DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS 12 12. DIRECTORS’ RECOMMENDATION 12 13. EGM 12 14. FURTHER INFORMATION 13 APPENDICES I SALIENT TERMS OF THE SPAs 14 II VALUATION CERTIFICATE 17 III FURTHER INFORMATION 22 NOTICE OF EGM ENCLOSED FORM OF PROXY ENCLOSED ivi This page is intentionally left blank. v PERAK CORPORATION BERHAD Registration No.: 199101000605 (210915-U) (Incorporated in Malaysia) Registered Office D-3-7 Greentown Square Jalan Dato’ Seri Ahmad Said 30450 Ipoh Perak Darul Ridzuan 24 May 2021 Board of Directors: Tan Sri Abdul Rashid bin Abdul Manaf (Independent Non-Executive Chairman) Tan Sri Ir Kunasingam a/l V. Sittampalam (Independent Non-Executive Director) Datuk Redza Rafiq bin Abdul Razak (Non-Independent Non-Executive Director) Andy Liew Hock Sim (Independent Non-Executive Director) Tan Chee Hau (Independent Non-Executive Director) Zainal Iskandar bin Ismail (Non-Independent Executive Director/Group Chief Executive Officer) To: The Shareholders of Perak Corporation Berhad Dear Sir/Madam PROPOSED DISPOSAL OF PROPERTIES 1.0 INTRODUCTION 1.1 On 17 December 2020 and 25 January 2021, the Board of Directors of Perak Corp announced that PCB Development had on 17 December 2020, entered into two (2) separate SPAs with PERKESO for the proposed disposal of four (4) pieces of vacant commercial land and one (1) piece of vacant residential land all situated at Mukim Hulu Kinta, Daerah Kinta, Perak Darul Ridzuan for a total cash consideration of RM78,679,531.26. THE PURPOSE OF THIS CIRCULAR IS TO PROVIDE YOU WITH THE RELEVANT INFORMATION PERTAINING TO THE PROPOSED DISPOSAL OF PROPERTIES AND TO SEEK YOUR APPROVAL FOR THE ORDINARY RESOLUTION PERTAINING TO THE PROPOSED DISPOSAL OF PROPERTIES TO BE TABLED AT THE FORTHCOMING EGM. THE NOTICE OF THE EGM AND THE PROXY FORM ARE ENCLOSED WITH THIS CIRCULAR. YOU ARE ADVISED TO READ AND CAREFULLY CONSIDER THE CONTENTS OF THIS CIRCULAR, TOGETHER WITH THE APPENDICES, BEFORE VOTING ON THE ORIDNARY RESOLUTION PERTAINING TO THE PROPOSED DISPOSAL OF PROPERTIES TO BE TABLED AT THE FORTHCOMING EGM. 1 2.0 DETAILS OF THE PROPOSED DISPOSAL The Proposed Disposal of Properties entails the disposal by PCB Development of the Properties to PERKESO on an ‘as is where is’ basis, Property 1, 2 and 3 are free from encumbrances whereas Property 4 and 5 are caveated by CIMB Bank Berhad via presentation No. 7414/2018 dated 18 May 2018, with vacant possession but subject to existing category of land use and all expressed or implied conditions and restrictions in interest affecting the issue document of title to the Properties, and subject to the terms and conditions of the SPAs. The salient terms of the SPAs are set out in Appendix I of this Circular. 2.1 Information on the Properties The Properties comprise five (5) pieces of freehold vacant land all situated at Mukim Hulu Kinta, Daerah Kinta, Perak Darul Ridzuan with details as follows: (a) Geran 173666 Lot 530704 measuring 85,950 square metres together with H.S.(D) 247861 PT278365 and H.S.(D) 247862 PT278366 measuring 33,945.40 square metres and 30,028 square metres respectively proposed to be disposed at a consideration of RM37,922,508.36; and (b) Geran 173674 Lot 530713 and Geran 173675 Lot 503714 measuring 68,600 square metres and 92,530 square metres respectively proposed to be disposed at a consideration of RM40,757,022.90.