TAANN与PELITA HOLDINGS成立JV

taann与PELITA成立JV,发展位于Sibu,Sarawak面积4,280.2ha的NCR land.公告中没有提及需要注入多少资金，也没有inspection document,应该是小投资。

Date Announced : 25/04/2008


Type : Announcement
Subject :
JOINT VENTURE AGREEMENT BETWEEN TA ANN HOLDINGS BHD AND PELITA HOLDINGS SDN BHD



Contents : The Board of Directors of Ta Ann Holdings Berhad (“TA ANN” or the “Company”) is pleased to announce that a wholly owned subsidiary of the Company, Ta Ann Plantation Sdn Bhd (hereinafter referred to as “TAP”) has entered into a Joint Venture Agreement (“JVA”) with Pelita Holdings Sdn Bhd (“PHSB”).

The details of this announcement are outlined below.


Announcement Details :

INTRODUCTION


The Board of Directors of TA ANN is pleased to announce that a wholly owned subsidiary of the Company, TAP has entered into a JVA with PHSB for the purpose of setting up a Joint Venture Company, (hereinafter referred to as “JVC”) to be incorporated by the Company and PHSB under the Companies Act 1965 and jointly owned by the parties to implement an oil palm development project (hereinafter referred to as “the Project”) in partnership with the Sarawak State Government and Native landowners (hereinafter referred to as “NCR Owners”) over the parcels of NCR land situated at Durin, Sibu Division, Sarawak containing a gross area of 4,280.2 hectares (hereinafter referred to as “the said Land”).

PARTIES

PHSB
PHSB is a subsidiary of PELITA (Land Custody and Development Authority), a statutory body under the Ministry of Rural and Land Development, Sarawak.

NCR Owners
The NCR Owners are the natives who are in occupation of and having Native Customary Rights (NCR) over the said Land.

TERMS OF THE JVA

Equity Structure

The equity structure of the JVC will be as follows:

Party Percentage of holdings

TA ANN 60%
NCR Owners 30%
PHSB 10%

PHSB’s Role in the JVC

PHSB shall arrange to carry out the Environmental Impact Assessment (EIA) Study for the Project, prepare the necessary EIA Report and to submit the report to and for approval by the Natural Resource and Environmental Board (NREB), Sarawak.

PHSB will apply to the relevant authorities for the alienation of the said Land to the JVC and will ensure that the application be expeditiously approved in the interest of the viability of the Project.

PHSB will also be responsible for initiating and facilitating the process of sorting out land matters relating to NCR Owners involved in the JVC.

TAP’s Role in the JVC

TAP shall set up a team of competent and professional personnel to develop and manage the Project. TA ANN will provide other assistance to the JVC as may be necessary including but not limited to the sourcing of funds for the Project and providing such necessary support if required from other members of Ta Ann Group (hereinafter referred to as “the Group”).

SOURCE OF FUNDS

TAP’s participation in the proposed JVC will be financed through the Group’s internally generated funds.

RATIONALE FOR THE PROPOSED JVA

The JVA will enable the Group to further expand its total acreage of oil palm plantations. This is in line with the Group’s aim of continually growing its oil palm division to achieve greater economies of scale and to broaden its earnings base.

The participation of PHSB and the NCR Owners will enhance the viability of the Project. PHSB has vast experience in facilitating joint ventures between private sector investors and native land owners. It is also well versed in the procedural requirements for the implementation of such projects.

The NCR Owners’ participation will ensure there is ample and suitable land for the implementation of the Project. It will also improve the potential returns of the JVC as there will be no initial cost for the purchase of land.

FINANCIAL EFFECTS OF THE PROPOSED JVA

Earnings

The proposed JVA is not expected to contribute to the earnings of TA ANN for financial year ending 31 December 2008. However it is expected to contribute positively in the future years.

Net Assets, Share Capital and Substantial Shareholders’ Shareholdings

The proposed JVA is not expected to have significant effects on the net assets of TA ANN for financial year ending 31 December 2008. The proposed joint venture does not have any effect on the share capital and shareholding structure of TA ANN for financial year ending 31 December 2008.

DIRECTORS AND SUBSTANTIAL SHAREHOLDERS’ INTEREST

None of the directors and / or substantial shareholders of TA ANN and / or any persons connected to them have any interest, direct or indirect in the JVA.

DIRECTORS’ STATEMENT

The Directors of TA ANN are of the opinion that the proposed JVA is in the best interest of the Company and the Group.


This announcement is dated 25th April 2008.

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