Compugates may venture into logging in PNG

agarwood or gaharu, a source of sandalwood

KUALA LUMPUR: Compugates Holdings Bhd has been invited by Papua New Guinea-based Marrienberg Hills Resources Development Ltd (MHRD) to log 26,000ha of its forested land.

The consumer electronic product distributor told Bursa Malaysia that its unit Compugates Perak Sdn Bhd (CPSB), which cultivates and sells agricultural products, had entered into a memorandum of understanding with MHRD, which would maintain its exclusive invitation to CPSB for six months.

The logging and marketing contract will be for a term of five years and will be renewable. 

Compugates, which posted a net loss of RM5.6mil for the first nine months of last year, said the financial effects of the MoU could only be determined on the finalisation and execution of a binding commercial enterprise with MHRD.

Compugates shares closed unchanged at 4.5 sen on Tuesday, with 30.89 million shares changing hands.