PETALING JAYA: Nextgreen Global Bhd has executed a letter of intent (LoI) to sell pulp and paper from its mill in Pahang to Japan-based Marubeni Corp.
In a filing with Bursa Malaysia yesterday, Nextgreen said a formal contract incorporating further details concerning the potential transaction and other terms would be prepared after further negotiations between Nextgreen and Marubeni.
“The LoI does not constitute a contract nor create any legal obligation, but is only to express the intention to enter into negotiations towards a formal contract, reflecting the understanding in the LoI,” it said in the statement.
The potential transaction will see Marubeni purchasing 5,000 tonnes of wood-free paper per year and 3,000 tonnes of bleached chemical pulp per year from September 2019 to August 2021.
Did you find this article insightful?