Introduction
The Board of Directors ("the Board") of PARB is pleased to announce that P. A. Extrusion (M) Sdn. Bhd. (Company No. 384326-A), a wholly-owned subsidiary of PARB, had on 24 January 2018 entered into a Supply Agreement with First Solar, Inc., a Delaware corporation, First Solar Vietnam Mfg. Co. Ltd. (Vietnam Enterprise Registration Certificate - Enterprise Code 0310607482), First Solar Malaysia Sdn. Bhd. (Company No. 758827-T) (collectively referred to as "First Solar") for the purpose of mutually beneficial business arrangement whereby First Solar purchase certain materials or other goods from the P. A. Extrusion (M) Sdn. Bhd. for its use in production of solar photovoltaic modules for a contract value of approximately RM600 million. ("The Agreement")
Duration
The Agreement shall commence from 2018 and shall remain effective for a period of 3 years.
Financial effects
The Agreement will not have any impact on the share capital and shareholding structure of PARB. The Agreement is expected to contribute positively to the earnings and net assets of PARB Group for the current and future financial years.
Risks
The risk factors affecting the Agreement includes changes in economic, regulatory environment and operational risks such as completion risk, fluctuation of material price and foreign currencies which the Group would take appropriate measures to mitigate the risks.
Directors’ and Major Shareholders’ Interest
None of the Directors and/or major shareholders and persons connected to the Directors and/or major shareholders of PARB have any interest, direct or indirect, in the Agreement.
Directors’ Statement
The Board, after considering all the relevant factors, is of the opinion that the Agreement is in the best interest of PARB Group.
This announcement is dated 24 January 2018.