1. Introduction

The Board of Directors of CRB wishes to announce that Reviva Sdn. Bhd. (“Reviva”), a wholly-owned subsidiary of the Company, had entered into an agreement with BAC Biogas (Kg. Gajah) Sdn. Bhd. (“BAC”) for the proposed acquisition of 1,530,000 unit of ordinary shares in BAC, representing 51% of its equity interest for a total consideration of RM6,000,000/- (Ringgit Malaysia: Six Million Only) (“the Acquisition”). The effective date of the agreement is on 28 May 2020.

2. Purpose

The Acquisition is to facilitate the CRB Group’s participation in renewable energy business.  

3. Details of BAC

BAC was incorporated as a private company limited by shares with an issued share capital of RM3,000,000/- comprising 3,000,000 ordinary shares. BAC is principally engaged in the business of developing and operating a 1.55MW palm oil mill effluent (“POME”) biogas plant in Kg Gajah, Perak. BAC has signed the renewable energy power purchase agreement (“REPPA”) with Tenaga Nasional Berhad (“TNB”) to sell the energy to TNB for a period of sixteen (16) years from the Commercial Operation Date (“COD”).

4. Financial Effects

The Acquisition is expected to contribute positively to the earnings and net assets of the Group.

5. Directors’ and Major Shareholders’ interests

None of the directors and/or major shareholders of CRB and/or persons connected with them have any interest, direct or indirect, in the Acquisition.  

6. Statement by the Directors

The Board of Directors of CRB, having considered all aspects of the Acquisition, is of the opinion that the Acquisition is in the best interest of CRB.

This announcement is dated 28 May 2020.