“Nextgreen and SPOIC are considering forming a joint venture for a project, with SPOIC holding 70% ownership and Nextgreen the remaining 30%, per their MOU.”
Kuala Lumpur, 7th June 2024 – Nextgreen Global Bhd has entered into a memorandum of understanding (MOU) with Sawit Palm Oil Industrial Cluster Sdn Bhd (SPOIC) to jointly develop the 400-acre Green Technology Park Sandakan in Sabah.
SPOIC, a subsidiary of the Sawit Kinabalu Group which is the investment arm of the Sabah state government, partners with Nextgreen, a company focused on green technology, sustainability, and renewable energy.
In a stock exchange filing on Thursday, Nextgreen announced that the MOU is intended to enable detailed discussions on the definitive agreements, such as the joint venture agreement and other related agreements for the proposed project.
“Both parties will undertake all necessary actions to finalize and execute the definitive agreements within one year from the date of the MOU, or within any mutually agreed upon extension,” stated Nextgreen, noting that the MOU will automatically expire if the agreements are not executed within the specified timeframe.
According to the MOU, Nextgreen and SPOIC are considering the formation of a joint venture company (JV) for the proposed project. If established, SPOIC will hold a 70% stake, with Nextgreen holding the remaining 30%.
Additionally, four more projects are planned within the proposed site: a collection and processing center (CPC), a pulp mill, a raw water treatment plant, and a steam boiler.
Nextgreen stated that while SPOIC is not required to invest in these projects, they will have the first right of refusal to become a joint venture partner.
Nextgreen also mentioned that the proposed project will cover around 400 acres of SPOIC-owned land in Sandakan, with the precise size and location to be determined through a joint survey and evaluation.
On Thursday, Nextgreen’s shares closed up one sen or 1.16% at 88 sen, bringing the group’s market capitalization to RM883.22 million.
