Business

Wednesday July 15, 2009

Firm to buy land in Sabah for RM240m


PETALING JAYA: United Malacca Bhd has proposed to acquire two parcels of leasehold land in Kinabatangan, Sabah from Borneo Glow Sdn Bhd for RM240mil cash.

In a filing with Bursa Malaysia yesterday, it said the proposed acquisition would increase its total plantation land from 14,008ha to 24,110ha, of which about 7,590ha were under five years of age.

It said the incremental plantation land arising from the proposed acquisition was a mix of relatively immature oil palm trees, which were less than five years old and undeveloped land, thus reducing the overall maturity profile of its plantations and increasing its total undeveloped plantation land for future oil palm cultivation.

The proposed acquisition was expected to contribute positively to the earnings as well as shareholders’ value of the group in the medium to long term, it said.

At present, the size of United Malacca’s total plantation land is approximately 14,008ha, of which 11,860ha comprise mature planted area and 1,904ha are immature planted area while the remaining 244ha are used for other purposes (including mill and housing).

The proposed acquisition would increase United Malacca’s total plantation land size from about 14,008ha to 24,110ha of which about 7,590ha are less than five years of age.

Moving forward, the group’s fresh fruit bunches pproduction for the coming financial year ending 30 April 2010 is expected to increase arising from additional areas coming into harvesting and increasing yield trend from the oil palms in the group’s estates as they reach their prime age.


UMCCA : [Stock Watch] [News]


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