Adela Megan Willy/theedgemarkets.com
October 25, 2017 21:56 pm MYT
KUALA LUMPUR (Oct 25): Priceworth International Bhd said the third forest management plan for a forest management unit in Trus Madi, Sabah it is seeking to acquire has been approved.
In a statemenmt today, Priceworth said the approval by the Sabah Forest Department was accepted by Anika Desiran Sdn Bhd (ADSB), which owns the rights to manage, replant and harvest the Forest Management Unit No 5 (FMU5).
Through its Singapore subsidiary GSR Pte Ltd, Priceworth is seeking to acquire ADSB and FMU5 from Transkripsi Pintar Sdn Bhd for RM260 million.
Priceworth executive director Richard Koo said that with the approval of the plan for the period Sept 1, 2017 to Aug 31, 2027, a condition precedent of FMU5’s acquisition has been deemed fulfilled.
The first condition precedent to be fulfilled was in May, with the Sabah Forest Department’s approval of repair, upgrading and harvesting operations in two compartments of FMU5.
A Singapore Exchange listing is being planned for GSR, which has also proposed to acquire sister company Sinora Sdn Bhd, Priceworth’s plywood manufacturing arm.
FMU5 is part of 1.8 million hectares of Class II commercial forest reserves being managed under the Sustainable Forest Management Licence Agreements, which are guided by FMPs as regulated by the Sabah Forest Department.
One requirement of the forest management plan was already met in November 2016, with the surrender of 12,241 hectraes from FMU5 to be conserved as a Class I protected forest. This area has been fused with FMU10, now known as the Nuluhon Trusmadi Forest Reserve.
With the excision, FMU5 now comprises 88,920 hectraes with tenure of 81 years remaining. One of the remaining condition precedent to the deal is the execution of a supplementary agreement to reflect the excision, Priceworth said.
http://www.theedgemarkets.com/article/third-management-plan-sabah-forest-management-unit-approved-says-priceworth