KUALA LUMPUR (May 17): Priceworth International Bhd's wholly-owned subsidiary Sinora Sdn Bhd (SSB) will immediately start logging operations within Sabah's Forest Management Unit 5 (FMU5) in Trus Madi following the approval of the state's authorities.

In a statement to Bursa Malaysia today, Priceworth said the Sabah Forestry Department had approved Anika Desiran Sdn Bhd's (ADSB) plan to undertake logging operations at FMU5's compartments 57 and 58.

Priceworth's wholly-owned unit GSR Pte Ltd is acquiring the entire stake in Rumpun Capaian Sdn Bhd from Transkripsi Pintar Sdn Bhd (vendor) for RM260 million. Rumpun owns 99.99% of ADSB.

Priceworth said: "On behalf of the board of PWI (Priceworth), RHB Investment Bank wishes to announce that the company was informed by the vendor that the Sabah Forestry Department has approved for ADSB to commence operations in 2017 for compartment 57 and compartment 58 within FMU5.

"In view of the approval and as agreed by parties to the log extraction and timber sale agreement, SSB, a wholly owned subsidiary of PWI, will immediately commence operations for the extraction and removal of all commercial logs and/or merchantable timber from compartment 57 and compartment 58 within FMU5 pursuant to the log extraction and timber sale agreement," said Priceworth, which plans to list GSR on the Singapore bourse.

At Bursa Malaysia, Priceworth's share trade was suspended from 9:10am to 12:30pm today in conjunction with the announcement.

Prior to the suspension, Priceworth shares were traded at 25.5 sen.