EVERGREEN FIBREBOARD BERHAD ~ MEMORANDUM OF UNDERSTANDING ~ PROVISION OF FINANCIAL ASSISTANCE

General Announcement
Reference No CI-050615-62992

Company Name

:

EVERGREEN FIBREBOARD BERHAD

Stock Name

:

EVERGRN

Date Announced

:

16/06/2005

Type

:

Announcement

Subject

:

EVERGREEN FIBREBOARD BERHAD
~ MEMORANDUM OF UNDERSTANDING
~ PROVISION OF FINANCIAL ASSISTANCE


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.

06-Jun-2011