Fajarbaru inks RM3.15m timber extraction deal with AK Timber

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KUALA LUMPUR (Oct 9): Fajarbaru Builder Group Bhd’s 51%-owned subsidiary Smooth Accomplishment Sdn Bhd has entered into an agreement with AK Timber Sdn Bhd to undertake the extraction and sale of timber in Hutan Simpan Yong in Mukim Tembeling, Jerantut, Pahang, for RM3.15 million.

In its filing to Bursa Malaysia today, Fajarbaru said the timber would be extracted from two blocks, namely Block A, Compartments 134-A and 135-A with an approximate area of 268 acres, and Block B, Compartments 135-B and 136-A with an approximate area of 232 acres.

“AKT has acquired all rights in the timber logs to be extracted or removed from the abovementioned timber concession from Lembaga Pemegang Amanah Yayasan Pahang, and AKT warrants and represents that they have absolute right to deal with the said timber logs,” said Fajarbaru.

The acquisition is expected to contribute positively to the earnings and net assets of Fajarbaru for the financial years ending June 30, 2016 and June 30, 2017.

Fajarbaru, which engages primarily in construction activities, saw its shares close up 0.5 sen or 1.09% higher today at 46.5 sen, for a market capitalisation of RM152.93 million.

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