Investor Relations

We refer to the announcement dated 10 September 2021 in relation to the Conditional Lease Agreement (“the CLA”) entered between CIMB Islamic Trustee Berhad (“CITB”), Next Generation Oil Sdn. Bhd. (“NGO”) and Boustead Plantations Berhad (“BPB”) (“Announcement”).

Unless otherwise stated, words and expressions used in this announcement shall have the same meaning as those attributed to them in the Announcement.

The Board of Directors of BPB wishes to announce that parties to the agreement have mutually agreed not to further extend the period to fulfill the Conditions Precedent which have expired six (6) months from the execution of the CLA. Accordingly, the CLA is deemed rescinded, terminated, and completely discharged pursuant to the terms of the CLA.

On 17 August 2022, the management of BPB had received a Notice of Termination of the CLA from NGO, pursuant to Clause 3.5 of the CLA. Clause 3.5 of the CLA provides that in the event any of the Conditions Precedent is not fulfilled with the prescribed period, the agreement shall lapse and be terminated and be of no further effect whatsoever whereupon BPB shall within ten (10) working days of the date of the termination refund any of the Security Deposit to NGO free of interest and thereafter neither party shall have any claim against the other parties save and except for any antecedent breach under the CLA.

In view thereof, BPB shall refund such amount to NGO within ten (10) working days from 17 August 2022, i.e., 30 August 2022. BPB is committed to the repayment of the 15% security deposit of Ringgit Malaysia One Million and Two Hundred Thousand (RM1,200,000.00) only by utilizing the company’s internal fund, where the Board of Directors of BPB does not foresee material financial impact to BPB as a result of the termination of the CLA in terms of the effect on earnings per share and net asset per share.

This announcement is dated 23 August 2022.