| General Announcement Reference No CI-070622-0CC73 |
| Company Name | : | EVERGREEN FIBREBOARD BERHAD |
| Stock Name | : | EVERGRN |
| Date Announced | : | 22/06/2007 |
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| Type | : | Announcement |
| Subject | : | NOVATION CUM ASSIGNMENT AGREEMENT WITH KOPERASI SERBAGUNA PENEROKA FELDA PALONG 7 BERHAD, ESTABLISHED UNDER AKTA KOPERASI, 1993 |
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 Koperasi Serbaguna Peneroka Felda Palong 7 Berhad ("KSP") whereby EHSB assumes all of the rights, interests, obligations and benefits of KSP arising under or pursuant to the harvest and extraction of rubber trees in the location known as Felda Palong 7 Peringkat 21G, Gemas, Negeri Sembilan approximately 273.844 hectares for a sum of RM5,065,994.91.
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 productivity 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.