Fajarbaru Builder Group has entered into two Logging Agreements with Lembaga Pemegang Amanah Yayasan Pahang as the sole and exclusive contractor to extract and purchase all standing timber logs in Kuantan of an approximate land area of 7,500 acres and another area with an approximate land area of 1,321 acres.
Under the agreement, the Fajarbaru subsidiary will pay a total cash consideration of RM39 million to Yayasan Pahang and separately another RM6.7 million. Fajarbaru says it does not foresee any exceptional risk other than normal operational risks associated with the logging activities.
Accordingly, the agreements will not have any effect on the share capital and shareholding structure of the Company as it does not involve the issuance of ordinary shares in the company. Nevertheless, it said the agreement is expected to contribute positively towards the earnings and net assets per share of the company for the financial year ending 30 June 2024 and onwards.
