EVERGREEN FIBREBOARD BERHAD~RECURRENT RELATED PARTY TRANSACTION
Reference No CI-070321-2F5C9
|Company Name||:||EVERGREEN FIBREBOARD BERHAD|
|Subject||:||EVERGREEN FIBREBOARD BERHAD
~RECURRENT RELATED PARTY TRANSACTION
Pursuant to Paragraph 2.1 (a) of the Practice Note 12/2001, the Board of Directors of Evergreen Fibreboard Berhad ("EFB") wishes to announce that in the course of the Group's operations, EFB shall enter into recurrent related party transaction of revenue or trading nature ("Transaction") which are necessary for the Group's day-to-day operations with Dawa Timber Industries (M) Sdn. Bhd. ("DTI"), to provide lamination and packing services to EFB at an estimated value of RM400,000-00 (Ringgit Malaysia Four Hundred Thousand Only) from 21 March 2007 to forthcoming Annual General Meeting to be held on 11 May 2007.
The Transaction entered into is in the ordinary course of business, made at arm's length, on normal commercial terms and on terms not more favorable to the related party than those generally available to the public and are not to the detriment of the minority shareholders.
As the estimated value of the Transactions falls within the ambit of the Paragraph 2.1(a) of the Practice Note 12/2001, that is,
- a) the consideration, value of the assets, capital outlay or costs of the Transactions is equal to or exceeds RM1 million; or
b) the percentage ratio of such Transactions is equal to or exceeds 1%,
whichever is the higher.
Thus, the Company is required to make an immediate announcement for such Transaction.
INFORMATION ON DTI
DTI (Company No. 32799-M), a company incorporated in Malaysia on 10 October 1977 with its relevant information as follows: -
i) Authorised capital of RM2,000,000 comprising of 2,000,000 ordinary shares of RM1.00 each.
ii) Paid-up capital is RM600,000.
iii) Its principal activity is manufacturing of fancy plywood.
RATIONALE OF TRANSACTION
The Transaction could enhanced efficiency planning in production capacity which would subsequently save administrative time, cost and expenses for the Group.
EFFECTS OF TRANSACTION
1. Share capital
- The Transaction is not expected to have any significant effect on the share capital of EFB Group.
2. Earnings and Net Assets
- The Transaction is not expected to have any significant effect on the Earnings and Net Assets for EFB Group.
DIRECTORS AND MAJOR SHAREHOLDERS' INTEREST
Save as Disclosed below, none of the Directors and/ or major shareholders of EFB or any persons connected with them have any interest, direct or indirect, in such Transaction: -
Kuo Wen Chi, Kuo Jen Chang and Kuo Jen Chiu, who are Directors and/or major shareholders in EFB and DTI.
Kuo Huei Chen, a major shareholder of EFB was also a director of EFB within the preceding six (6) months of the date on which the terms of the aforementioned transactions were agreed upon
STATEMENT BY THE DIRECTORS
The Board, after careful deliberation, is of the opinion that the Transaction is in the best interest of EFB Group.
This Transaction does not need any authorities' and shareholders' approval.