Biofutures International PLC News Announcement

Biofutures Intl plc - Land In Malaysia

RNS Number : 6987U
  Biofutures International plc
  16 May 2008


Biofutures International plc


('Biofutures' or 'the Company')

Land in Malaysia

On 16 May 2008 Zurex Corporation Sdn Bhd ('Zurex') a wholly owned Malaysian
subsidiary of Biofutures entered into two interrelated agreements with POIC
Sabah Sdn. Bhd. ('POIC').
The first agreement ('Termination Agreement') rescinded an existing contract
between Zurex and POIC whereby Zurex had agreed to acquire a 50 acre plot of
land ('50 Acre Plot') within Phase 1 of POIC's Lahad Datu site for Malaysian
Ringgit ('RM')
26,136,000 (approximately £4.15m) ('Original Agreement').
Under the second agreement Zurex has contracted to acquire a 14 acre plot of
land ('14 Acre Plot') from POIC within Phase 1 of POIC's Lahad Datu site for RM
7,318,080 (approximately £1.16m) ('Sale and Purchase Agreement').
Under the Termination Agreement, subject to the Sale and Purchase Agreement
being entered into and with payments being made as described below, neither
party to the Original Agreement has any claim whatsoever against each other and
the Original
Agreement is rescinded with no further effect.
Zurex had paid RM 7,840,800 (approximately £1.25m) towards the purchase of the
50 Acre Plot with the balance of the purchase consideration of RM 18,295,200
(approximately £2.91m) outstanding.  POIC has agreed with Zurex that the
funds paid to-date by Zurex will be used to acquire the 14 Acre Plot for RM
7,318,080 (approximately £1.16m), plus interest of RM 519,140 (approximately
£82,400) with the balance of RM 3,580 (approximately £570) offsetting
part of the fees payable by Zurex to POIC in respect of the transaction which
total RM 21,400 (approximately £3,400).  The outstanding RM 17,820
(approximately £2,830) will be paid to POIC by Zurex in cash.  It is the opinion
of the
Directors that the 14 Acre Plot being acquired is a fair value for the land
based on the compromise reached with POIC.
Zurex originally contracted to acquire the 50 Acre Plot in order to develop a
200,000 tonnes per annum palm oil biodiesel plant (the 'Plant') leaving room for
expansion.  As previously announced the board of Biofutures is currently
reviewing the
economic viability of this project and negotiations are taking place with a view
to re-engineering it.  The Termination Agreement and the Sale and Purchase
Agreement together form part of the re-engineering process and at the same time
leave the Directors
with sufficient acreage to build the Plant should the project prove to be
economically viable while allowing the Company to retain RM 18,277,380
(approximately £2.90m) which would otherwise have been spent on acquiring the 50
Acre Plot.


For the purposes of this announcement an exchange rate of RM 1 to approximately
£0.1588 has been used

For further information please contact:

Julie Pomeroy, Finance Director
    Biofutures International Plc                                0117 920 0092

Emily Morgan, Blomfield Corporate Finance        01275 871 717

    Paul Vann                                                        0117 920 0092
Winningtons Financial PR

This information is provided by RNS
The company news service from the London Stock Exchange

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