EVERGREEN FIBREBOARD BERHAD ~ MEMORANDUM OF UNDERSTANDING ~ PROVISION OF FINANCIAL ASSISTANCE
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General Announcement |
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Company Name |
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EVERGREEN FIBREBOARD BERHAD |
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Stock Name |
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EVERGRN |
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Date Announced |
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16/06/2005 |
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Type |
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Announcement |
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Subject |
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EVERGREEN FIBREBOARD BERHAD |
Contents :
INTRODUCTION
On behalf of the Board, we wish to announce
that early June 2005, EFB has entered into a Memorandum of Understanding (MOU)
with Perniagan Kejaya ("PK") to obtain rubberwood branches logged from the
concession via tender(s) from Felda Agricultural Services Sdn Bhd for area(s)
measuring approximately 3,000 acres located at Felda Tembangau 2, Temerloh,
Pahang.
INFORMATION OF PK
Lee Cheng Chuan (NRIC 660708-01-5413) trading
as sole proprietor under PK (JM-0182010A) having its place of business at Lot
69, Jalan Nagasari, Segamat Baru, 85000 Segamat, Johor.
OBJECTIVE OF MOU
PK is desirous in acquiring the rights to
rubberwood logging via tender(s) from Felda Agricultural Services Sdn Bhd ("Felda")
for area(s) measuring approximately 3,000 acres located at Felda Tembangau 2,
Temerloh, Pahang. Upon successfully obtaining the concession from Felda, PK
undertakes to supply exclusively to EFB, rubberwood branches logged from the
concession and EFB is interested in buying such branches from PK.
SALIENT TERMS OF THE MOU
1.
PK has requested EFB to pay Felda on its
behalf, a total sum amounting to RM1,000,000 (Ringgit Malaysia One Million only)
via Bank Draft which is to be made payable to Felda and shall form as part
payment and/or deposit to acquire this concession as per tender requirements.
2. Once Felda has awarded the tender to PK, PK
shall inform EFB in writing together with a copy of Award Letter earmarking the
said location, to further pay Felda via Bank Draft a total sum amounting to
RM1,400,000.00 (Ringgit Malaysia One Million Four Hundred Thousand only) or any
other lesser amount which shall form as balance payment to Felda, as per the
tender requirements.
3. Upon receiving official notification from
Felda awarding the tender(s) to PK, EFB and PK agree to execute a formal
agreement and the terms in this MOU shall form as an integral part and shall be
annexed into the agreement.
4. PK hereby unconditionally undertakes and
guarantees to EFB to return all the Bank Draft(s) that was paid to Felda by EFB
if the tender for the concession does not materialize for any reason whatsoever.
PROVISION OF FINANCIAL ASSISTANCE
Pursuant to Paragraph 3.1 of PN11/2001 and
Paragraph 8.23 of the Bursa Malaysia Securities Berhad Listing Requirements, on
behalf of EFB, we wish to announce that EFB has provided financial assistance
amounting to RM1,000,000.00 (Ringgit Malaysia One Million only) to PK early June
2005. The financial assistance is necessary to facilitate the ordinary course of
business of EFB Group.
The Board of Directors is of the opinion that
the provision of the financial assistance is fair and reasonable and is in the
best interest of EFB Group and not to the detriment of EFB and its shareholders.
FINANCIAL EFFECTS OF THE MOU
AND FINANCIAL ASSISTANCE
The above transaction has no material effects
on the earnings and net tangible assets of EFB and EFB Group and did not have
any effect on the share capital of EFB.
DIRECTORS' AND SUBSTANTIAL
SHAREHOLDER'S INTEREST
None of the Directors, or major shareholders
of EFB or person connected to them have any interest, direct or indirect, in the
MOU and provision of financial assistance.