MEMORANDUM OF UNDERSTANDING LATITUDE TREE HOLDINGS BERHAD ("LTHB" OR "THE COMPANY") MEMORANDUM OF UNDERSTANDING BETWEEN RHONG KHEN TIMBERS SDN BHD, A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY AND ADVANCECON SOLAR SDN BHD
LATITUDE TREE HOLDINGS BERHAD |
Type | Announcement |
Subject | MEMORANDUM OF UNDERSTANDING |
Description | LATITUDE TREE HOLDINGS BERHAD ("LTHB" OR "THE COMPANY") MEMORANDUM OF UNDERSTANDING BETWEEN RHONG KHEN TIMBERS SDN BHD, A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY AND ADVANCECON SOLAR SDN BHD |
1. Introduction
The Board of Directors of Latitude Tree Holdings Berhad (“LTHB” or “the Company”) wishes to announce that Rhong Khen Timbers Sdn Bhd (“RKTSB”), a wholly-owned subsidiary of the Company had on 17 July 2020 entered into a Memorandum of Understanding (“MOU”) with Advancecon Solar Sdn Bhd (Registration No. 201901010325 (1319653-H)) (“ADVANCECON”) to develop rooftop solar photovoltaic system under the Net Energy Metering (“NEM”) scheme on the rooftop of RKTSB’s premises located in Ajil, Terengganu (“RKTSB’s Premise”) (“the Project”) with the adoption, execution and implementation of the Supply Agreement with Renewable Energy (“SARE”) between RKTSB and ADVANCECON with Tenaga National Berhad (“TNB”).
RKTSB and ADVANCECON shall hereinafter be collectively referred to as the “Parties” and individually as the “Party”.
2. Information on ADVANCECON
ADVANCECON is a company incorporated in Malaysia and having its business address at 16, 18 & 20, Jalan Pekaka 8/3, Seksyen 8, Kota Damansara, 47810 Petaling Jaya, Selangor Darul Ehsan.
ADVANCECON is a wholly-owned subsidiary of Advancecon Holdings Berhad. The total issued paid-up capital is 1,000,000 ordinary shares.
The directors of ADVANCECON are Phum Boon Lim and Teh Heng Wee.
3. Salient Terms of MOU
The provisions of the MOU include the following:
a) ADVANCECON shall fulfill the role of engineering, procurement and construction of a 1,815kWp solar photovoltaic system that will be installed on RKTSB’s Premises;
b) ADVANCECON shall invest and own the solar photovoltaic system throughout the terms of the SARE agreement;
c) ADVANCECON shall fulfill the role of operations and maintenance of the solar photovoltaic system throughout the terms of the SARE agreement;
d) RKTSB shall give consent and allow ADVANCECON to install the solar photovoltaic system on RKTSB’s Premises during the terms of the SARE agreement period; and
e) Ownership, operations and maintenance of the solar photovoltaic system shall be transferred to RKTSB after the expiration of the terms of the SARE agreement.
4. Termination
This MOU shall be effective from the date hereof and shall be terminated on the following events:
a) the execution of the SARE; or
b) either Party mutually agreeing in writing to terminate this MOU by giving fourteen (14) days’ notice to the other; or
c) for whatsoever reasons, the Parties cannot reach a consensus on the terms of the SARE.
5. Financial Effects
The MOU is not expected to have any material effect on the earnings per share, net assets per share, gearing, share capital and substantial shareholders’ shareholdings of the Company.
6. Directors’ and/or Substantial Shareholders’ Interest
None of the Directors’ and/or substantial shareholders and/or any person connected to them has any interest, either direct or indirect in the MOU.
7. Directors’ Statement
The Board of Directors of the Company, having reviewed and considered the terms and conditions of the MOU, are of the opinion that the terms and conditions of the MOU are fair, reasonable and in the best interest of LTHB Group.
8. Approval Required
The MOU does not require the approval of shareholders of the Company and any relevant government authorities.
This announcement is dated 17 July 2020. |
Announcement Info
Company Name | LATITUDE TREE HOLDINGS BERHAD |
Stock Name | LATITUD |
Date Announced | 17 Jul 2020 |
Category | General Announcement for PLC |
Reference Number | GA1-15072020-00021 |