Singapore, August 2013: IEV Energy Sdn. Bhd. (“IEV Energy”) has received the Certificate of Investment (the “Certificate”) from the Department of Planning and Investment of Can Tho City (DPICT), Vietnam certifying the incorporation of IEV Biomass Vietnam JSC (“IEV Biomass VN”).
IEV Biomass VN was incorporated with a charter capital of VND62,000,000,000 (equivalent to approximately USD2,980,000). The charter capital is payable in cash within 90 days from 27 August 2013, being the date of the Certificate. IEV Energy will have a shareholding interest of 80% in IEV Biomass VN, and the remaining 20% will be held by local and unrelated third-party investors.
The principal activities of IEV Biomass VN will include the production of biomass from forestry and agricultural waste for domestic and export markets. The Certificate will allow IEV to proceed with the next course of action, which includes among others, the application for construction permit, tax registration, and the signing of feed supply and biomass sales agreements, for its first biomass production in Vietnam (the “Biomass Project”), which are the conditions precedent for the Group’s final investment decision.
The incorporation of IEV Biomass VN is funded by the Group’s internal resources. The Biomass Project is not expected to have any material impact on the net tangible assets and earnings per share of the Group for the current financial year ending 31 December 2013. The Company will provide further updates when there is any material development.