KUALA LUMPUR (July 4): Fajarbaru Builder Group Bhd’s 51%-owned unit has clinched a deal to undertake the sale and extraction of timber from Hutan Simpan Berkelah in Jerantut, Pahang.
In a filing to the stock exchange, the firm said its subsidiary Billion Variety Sdn Bhd would pay RM6 million cash to Cekal Kasih Sdn Bhd to extract timber within an area measuring 1,423 acres, for a period of 12 months.
Cekal Kasih was awarded the timber concession by Yayasan Pahang.
Fajarbaru said it would contribute RM3 million of the RM6 million cash consideration, funded by internally generated funds, while the r balance would be contributed by shareholders of Billion Variety.
“The agreement will provide the firm the opportunity to expand its earning base to logging and timber trading business,” said Fajarbaru, which is in the construction business.
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