News

The Board of Directors of KAB wishes to announce that KAB Energy Holdings Sdn. Bhd. [Registration No. 202101013322 (1413621-K] (“KABEH”), an ultimate subsidiary of the Company had on 13 July 2023 entered into Heads of Agreement (“HOA” or “the Agreement”), dated 13 July 2023 with XSD International Paper Sdn. Bhd. [Registration No. 201801026864 (1288890-H)] (“XSDIP”) in relation to the proposed development, ownership, and operation of a biomass-fueled steam turbine cogeneration plant and relevant infrastructure and facility ("Facility") by KABEH (“Project”). The Parties intend to implement the Project on an undivided plot of land that is held under Provisional Title No. H.S.(D) 4105, PT441, Mukim Padang Meha, Daerah Kulim, Negeri Kedah ("Land"). XSDIP will lease to KABEH a portion of the Land for the purposes of the Project (“Project Land”).

KABEH and XSDIP (“the Parties”) are entering into this HOA to record the Parties’ understanding on the fundamental principles and terms pertaining to the leasing of the Project Land to KABEH for the purposes of the Project (“Project Land Leasing”), the development, ownership and operation of the Facility as well as the sale and purchase of thermal energy (“Facility Development and Thermal Energy Sale”), the supply of the biomass or feedstock or other organic fuel mixes for the Facility (“Supply of Facility Fuel”) and the provision of the operation and maintenance services in respect of the Facility (“O&M Services”).

Please refer to the attachment for further details of the announcement.

This announcement is dated 13 July 2023.