DGAP-News: Asian Bamboo AG secures another plantation lease agreement

 | Source: EQS Group AG EQS Group AG 

Asian Bamboo AG / Contract

14.12.2009 

Dissemination of a Corporate News, transmitted by
DGAP - a company of EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.

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Hamburg, 14 December, 2009 - Asian Bamboo AG ('Asian Bamboo', 'the
Company', ISIN: DE000A0M6M79, ticker symbol: '5AB'), a world-leading
producer of bamboo trees and organic bamboo shoots, is pleased to announce
that it has signed a lease agreement for a bamboo plantation with a total
size of approximately 2,100 hectares (ha).
The plantation is located in Guilin Town in Shaowu City, Fujian Province,
close to some of the Company's other plantations. Asian Bamboo will pay a
total fee of around EUR 11 million for a 20 year lease, translating into
EUR 5,370 per ha. The company will utilise the funds borrowed from DEG to
finance the lease. Around 30% of the total lease fee will be paid before
the end of the year and the balance when the harvesting rights are
transferred. The plantation is expected to start generating output in Q3
2010.
Lin Zuojun, CEO and founder of Asian Bamboo, commented: 'Securing new
plantation leases is the foundation of our business model. Including this
plantation lease, we now have a total plantation size of 31,629 ha, of
which 27,943 ha are mature plantations.'
Asian Bamboo AG and Mr. Lin Zuojun win awards
Asian Bamboo AG is also delighted to announce that Fujian Xinrixian Group,
its wholly owned subsidiary, has been selected by the Provincial People's
Government to receive the 'Best Agriculture Enterprise Brand in Fujian
Province' award, including a cash prize of around EUR 100,000. The award
recognises the Group's contribution to agricultural industrialisation,
brand building and corporate and social responsibilities.
In addition, Mr. Lin Zuojun, Asian Bamboo's founder and CEO, has been
selected as one of the 'Outstanding Young Entrepreneurs in Fujian Province'
by a panel of ten provincial government authorities, including the
Communist Youth League Committee of Fujian Province, the Provincial Rural
Affairs Office and the Provincial Economic and Trade Commission.
Mr. Lin commented: 'We are delighted to receive these awards which show
that we are striking the right balance between achieving financial returns
for our shareholders, contributing to the development of the Chinese
agriculture sector and supporting the areas where we operate.'


For enquiries, please contact: 
Asian Bamboo AG:
Peter Sjovall  +852-9385 3868
Chief Financial Officer
Anja Holst  +49-(0)40 37644 798
Investor Relations Manager





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Language:     English
Company:      Asian Bamboo AG
              Stadthausbrücke 1-3
              20355 Hamburg
              Deutschland
Phone:        +49 40 37644 798
Fax:          +49 40 37644 500
E-mail:       info@asian-bamboo.de
Internet:     www.asian-bamboo.de
ISIN:         DE000A0M6M79, DE000A0M6M79
WKN:          A0M6M7, A0M6M7
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, München, Stuttgart
 
End of News                                     DGAP News-Service
 
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