NOVATION CUM ASSIGNMENT AGREEMENT WITH BENEFIT CIRCLE SDN. BHD.

General Announcement Reference No CI-070622-0CC72

Company Name	:	EVERGREEN FIBREBOARD BERHAD
Stock Name	:	EVERGRN
Date Announced	:	22/06/2007

 

Type	:	Announcement
Subject	:	NOVATION CUM ASSIGNMENT AGREEMENT WITH BENEFIT CIRCLE SDN. BHD.

Contents :

INTRODUCTION
On behalf of the Board of Directors of Evergreen Fibreboard Berhad ("EFB" or "the Company"), we wish to announce that its wholly owned subsidiary, Evergreen Hevea Resources Sdn. Bhd. ("EHSB") has entered into Novation cum Assignment Agreement with Benefit Circle Sdn. Bhd.("BCSB") whereby EHSB assumes all of the rights, interests, obligations and benefits of BCSB arising under or pursuant to the harvest and extraction of rubber trees in the location known as Felda Palong 7 Peringkat 21B, Gemas, Negeri Sembilan approximately 366.668 hectares for a sum of RM6,636,690.80.

INFORMATION ON BCSB
BCSB was incorporated on 5 April 2007 with its relevant information as follows: -
a) Authorised capital of RM100,000 comprising of 100,000 ordinary shares of RM1.00 each.
b) Paid-up capital is RM60,000.
c) The principal activity of BCSB is general trading.

RATIONALE
This agreement will be able to secure a consistent supply of raw material at a stable price which will enable the Group's operation in Malaysia, to achieve maximum producitivity at a manageable cost especially during monsoon season.

FINANCIAL EFFECTS
This agreement 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 for the financial year ending 31 December 2007.

DIRECTORS' AND MAJOR SHAREHOLDERS' INTEREST
None of the Directors or substantial shareholders of EFB or persons connected to them have any interest, direct or indirect, in this agreement.

APPROVALS REQUIRED
This agreement is not subject to the approval of shareholders' of EFB and other government authorities.