Investment in Thailand
| General Announcement |
| Reference No C&-050504-96E77 |
| Company Name | : | EVERGREEN FIBREBOARD BERHAD |
| Stock Name | : | EVERGRN |
| Date Announced | : | 04/05/2005 |
 | | |
| Type | : | Announcement |
| Subject | : | Investment in Thailand |
Contents :
On behalf of the Board of Directors of Evergreen Fibreboard Berhad ("EFB or the Company"), we wish to announce that pursuant to section 15.7 (b) of the Prospectus dated 15 February 2005, the Company has entered into an agreement on 5 May 2005, namely Addendum to the Joint Venture Agreement No. 2 with the following parties to invest in Dynea Krabi Co., Ltd. (hereinafter known as "Dynea Krabi"): -
1. Dynea Chemicals OY of Siltasaarenkatu 18-20 18-20A, Helsinki, F1-00530, Finland. (hereinafter known as "Dynea");
2. Mr Sombat Atiset of Kata Thani Co., Ltd., 3/24 Patak Road, Katanoi Beach, Phuket 83100, Thailand (hereinafter known as "Sombat");
3. Mr Somsri Chairittidej of No. 33/24 Moo 1, Tambon Bangkaew, Amphoe Bangplee, Samutprakarn, Thailand (hereinafter known as "Somsri"); and
4. MP Particle Board Co., Ltd. of 25th Floor, Pleonchit Center Bldg., No.2 Sukhumvit Soi 2, Klongtoey, Bangkok 10110 Thailand (hereinafter known as "MPP").
Prior to participation of EFB, the existing parties namely Dynea, Sombat, Somsri and MPP had formed a company namely Dynea Krabi through a Joint Venture Agreement dated 8 May 2002 and an Adendum to the Joint Venture Agreement No. 1 dated 31 July 2003 with an initial paid up capital of Baht55,000,000 (Baht Fifty Five Million Only). Subsequently, the paid up capital will be increased to Baht165,000,000 (Baht One Hundred and Sixty Five Million) by issuing new 1,100,000 (One Million One Hundred Thousand Only) ordinary shares, at par value of Baht100.00 (Baht One Hundred Only) each.
Information on Dynea Krabi
The principle activity of Dynea Krabi is manufacturing and trading of panel board resins, impregnated papers and industrial resins and its shareholdings are as follows:
| Shareholders of Dynea Krabi |
Percentage
|
Baht
|
RM equivalent
|
| a) Dynea |
51%
|
84,150,000
|
8,415,000
|
| b) Sombat |
10%
|
16,500,000
|
1,650,000
|
| c) Somsri |
5%
|
8,250,000
|
825,000
|
| d) EFB |
25%
|
41,250,000
|
4,125,000
|
| e) MPP |
9%
|
14,850,000
|
1,485,000
|
|
TOTAL
|
100%
|
165,000,000
|
16,500,000
|
Rationale
To ensure continuous supply of glue and cost saving on purchase price of glue for its manufacturing operations in Thailand pursuant to section 5.9 of the Prospectus dated 15 February 2005.
Effect of Transaction
1. Earning and NTA
No immediate material effect on the earning and NTA of the Group.
2. Share Capital
No effect on the issued and paid up capital share capital of the Group.
Director's and Substantial Shareholder's Interest
Kuo Jen Chang is a director of EFB and Dynea. He also has substantial deemed interest in Dynea Krabi
Approvals Required
The acquisition is not subject to the approval of shareholders' of EFB and other government authorities.