Priceworth

[winston]

not vested

Rashid Hussain, wife subscribe to Priceworth's special issue shares

BY M. HAFIDZ MAHPAR

In a filing with Bursa Malaysia, the logging and wood product manufacturing firm said it had inked a conditional agreement with the three subscribers to issue and allot up to 215.64 million new PWI shares at 10 sen each.

Abdul Rashid will subscribe to shares representing up to 6.4% of PWI’s paid-up capital as at the last practicable date, Puan Sri Emilahani Yang Mohd Yatim will subscribe to up to 3.6% and Maha Gayabina up to 20%

Source: The Star

http://www.thestar.com.my/business/busi ... ue-shares/

[winston]

Priceworth gets green light to log at Sabah forest reserve

BY M. HAFIDZ MAHPAR

KUALA LUMPUR: Priceworth International Bhd’s wholly owned subsidiary Sinora Sdn Bhd will begin immediately to extract and remove commercial logs and/or merchantable timber from the Trus Madi forest reserve area in Sabah.

In a filing with Bursa Malaysia on Wednesday, the wood product manufacturer said this followed the approval given by Sabah Forestry Department for Anika Desiran Sdn Bhd (ADSB), which has appointed Sinora as contractor, to start operations in Compartment 57 and Compartment 58.

These compartments span a total of 1,759.8ha within Trus Madi.

As the contractor, Sinora agrees to buy from ADSB the logs it extracts at RM5 net per cu metre for all sizes, species and grades.

The price excludes the log extraction charges, royalty, premium, cess and any other statutory charges to be borne and paid by Sinora directly to the Sabah Forestry Department for and on behalf of ADSB.

In its announcement, Priceworth did not give any estimate of how many cu metres of logs were expected to be extracted within a certain period.

ADSB is a 99.99% owned subsidiary of Rumpun Capaian Sdn Bhd, which was awarded a 100-year concession in September 1997 to carry out harvesting, forest management and rehabilitation, and industrial tree planting within 101,161ha in Trus Madi. This licensed area is known as Forest Management Unit 5 (FMU5).

Concurrent with the signing of the log extraction and timber sale agreement with ADSB in October last year, Priceworth’s unit GSR Pte Ltd inked a share sale and purchase agreement (SPA) to buy 100% in Rumpun Capaian for RM260mil.

Priceworth intends to inject Sinora into GSR, which will then seek a listing on the Singapore Exchange.

The SPA between GSR and Rumpun Capaian is conditional on, among others, the issuance of the coupe permits for Compartment 57 and Compartment 58 based on the new forest management plan for the licensed area.

Priceworth said on Wednesday that the approval by the Forestry Department fell within the meaning of “coupe permit”.

Apart from the above, it said, other conditions precedent specified in the SPA had yet to be fulfilled.

Among the other conditions previously announced is ADSB undertaking to submit further applications to the director of the Forestry Department for his approval and issuance of further coupe permits for other compartments within FMU5.

Source: The Star

http://www.thestar.com.my/business/busi ... lbt6pyL.99

[winston]

not vested

Priceworth jumps 10% on forecast of RM100m net profit in FY18

by Anette Appaduray

KUALA LUMPUR (June 13): Shares of Priceworth International Bhd climbed 10.42% in morning trade today, as the counter saw some 24.6 million shares traded on the company's positive earnings outlook going forward.

In a report in The Edge Financial Daily today, the integrated timber company said it is expecting to achieve RM100 million in net profit in its financial year ending June 2018 from its concession to harvest and rehabilitate a 101,161-hectare forest reserve in Trus Madi, Sabah.

Its executive director Richard Koo said that based on the general industrial benchmark of the timber industry at a production volume of 9.3 million cu m of timber at a profit of RM120 per cu m, the company expects to make a net profit of RM100 million in FY18.

The concession agreement will see the group develop Forest Management Unit 5 (FMU 5), a project that was last month given approval by the Sabah Forestry Department.

The stock was the third most actively traded stock on Bursa Malaysia.

At 10.38am, Priceworth was up 2 sen at 26 sen, for a market capitalisation of RM220.3 million.

The stock is currently trading 188% higher than its yearly low of 9 sen on Aug 29 last year.

Source: The Edge

http://www.theedgemarkets.com/article/p ... rofit-fy18