Reference No CI-070607-1AD43
|Company Name||:||EVERGREEN FIBREBOARD BERHAD|
|Subject||:||EVERGREEN FIBREBOARD BERHAD ("EFB" or "the Company")
MEMORANDUM OF UNDERSTANDING WITH SCHRADER UMWELTMANAGEMENT GMBH & CO KG
The Board of Directors of EFB, is pleased to announce that EFB and SCHRADER UMWELTMANAGEMENT GMBH & CO KG (hereinafter referred to as "Schrader GMBH") has on 7 June 2007 entered into a Memorandum of Understanding (hereinafter referred to as "MOU") to purchase 100,000 ordinary shares of RM1.00 each which have been issued and credited as fully paid up (hereinafter referred to as "the said shares") of Schrader Forest Management Sdn Bhd (hereinafter referred to as "SFM") and further enter into a sale and purchase agreement, joint venture agreement or management agreement by way of a partnership to jointly harvest and develop the Hutan Simpanan Bukit Tarek (hereinafter referred to as "the Land"), located in the State of Selangor measuring 12,177 acres encompass acacia and other various timber species, on the terms and conditions to be mutually agreed upon between the Company and Schrader GMBH. The consideration of purchasing the said shares shall be determined upon the signing the sale & purchase agreement.
BACKGROUND INFORMATION ON Schrader GMBH AND SFM
Schrader GMBH is a company incorporated in Germany and having its registered office at Koellner Ch. 136, 25337, Koelln-Reisiek, Germany.
SFM (Company No. 500752-V) is a private company incorporated in Malaysia having an authorised capital of RM100,000-00 (Ringgit Malaysia One Hundred Thousand Only) comprising of 100,000 ordinary shares of RM1.00 of which 100,000 ordinary shares have been issued and credited as fully paid up.
SFM has one of its principal activities the carrying of and does carry on the business of forest management and nursery forest planning.
Schrader GMBH is the sole registered and beneficial owner of the said shares of SFM which are free from all charges liens, other encumbrances and liabilities.
The MOU does not have any effect on the issued and paid up share capital, net assets position, earnings, gearings and the major shareholdings structure of EFB.
DIRECTORS' AND SUBSTANTIAL SHAREHOLDERS' INTEREST
None of the Directors or substantial shareholders of EFB or persons connected to them have any interest, direct or indirect, in the MOU.
STATEMENT BY THE BOARD OF DIRECTORS
The Board of Directors of EFB, having taken into consideration all aspects of the MOU and is of the opinion that the MOU is in the best interest of the Company and its shareholders.
The MOU is not subject to the approval of the shareholders of EFB.