KUALA LUMPUR: Compugates Holdings Bhd’s unit, Compugates Marketing Sdn Bhd, has signed a standing agarwood sale and cutting agreement (SASC) with Westwood Marketing Sdn Bhd worth RM43.884mil.
In a filing to Bursa Malaysia on Friday, Compugates Holdings said Westwood Marketing had agreed to buy the standing agarwood trees in a one-year term while Compugates Marketing had agreed that it would not sell except to Westwood Marketing in that period.
“Westwood Investment Group took an interest in the agarwood segment due the high demand for its wood and oil with the main market demand coming from China, Taiwan, Japan and the Middle East,” it said.
Compugates Holdings said trade value annually through Singapore was estimated at US$1.2bil (RM4.3bil); thus Westwood Investment Group took a very keen interest in this agricultural segment.
“The execution of the SASC agreement has enabled the group to expand its agricultural related businesses.
“Westwood Marketing is confident that with Compugates Marketings experiences with gaharu wood, it will be able to synergize the business for the both companies, it said.
“The SASC agreement is expected to contribute to the earnings of the company and the group for the financial year ending Dec 31, 2015 onwards,” it said. - Bernama