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Annica inks MOUs with Perak's state economic development corporation

CATALIST-LISTED oil and gas company Annica Holdings on Tuesday entered into Memorandum of Understandings (MOUs) with Perak's state economic development corporation to explore and build large-scale solar photovoltaic projects, and for the latter to "endeavour" to supply natural resources from Perak to Annica's customers.

One MOU was signed between Perak's Perbadanan Kemajuan Negeri Perak (PKNP), the property development and renewable energy investment holding company Majuperak Holdings of which PKNP is the largest shareholder and Cahya Suria Energy, a subsidiary of Annica.

Annica said in a bourse filing on Tuesday that they identified an initial site suitable for a proposed 35MW capacity LSS Project, or about 3.3 acres/MW, and "will continue to collaborate in the future to identify and evaluate other potential sites for the development of other LSS Projects". They may also enter into legally binding definitive agreements.

Under the other MOU signed between PKNP and Annica unit P J Services, "PKNP shall endeavour to enter into supply contracts" for PKNP to source and supply mining sand, granite, granite aggregates, minerals and other natural resources from Perak to customers of P J Services.

PKNP has also agreed to arrange all necessary export permits for such products.

In its statement, Annica said: "The board is of the firm view that the collaboration between the parties under the MOUs will not only boost the group's business in the renewable energy sector but also allow the group to gain a valuable toehold and to explore other business opportunities, such as the supply of the products, in the state of Perak."The MOUs are not expected to have any material impact on the net tangible assets per share and earnings per share of the group for the current fiscal year.

Annica shares closed unchanged on Tuesday at 0.1 Singapore cent before the announcement was made.

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