Govt reviews sale of TH Plantations’ subsidiaries to Tamaco

THE proposed sale of two subsidiaries of TH Plantations Bhd (THP) will be reviewed by the Economic Planning Unit (EPU), said Deputy Minister in the Prime Minister’s Department (Religious Affairs) Ahmad Marzuk Shaary.

The EPU is a unit under the Prime Minister’s Department (PMD).

THP had proposed on Dec 6 last year to sell its stake in two subsidiaries, Bumi Suria Ventures Sdn Bhd and Maju Warisan Sdn Bhd, to Sabah-based Tamaco Plantation Sdn Bhd.

Bumi Suria and Maju Warisan owned 6,514ha of land in Bintulu and Sibu in Sarawak.

But Marzuk said a review had been underway due to the proposed transaction, which was valued at about RM4,500 per hectare, was “too cheap.” He also pointed out that Tamaco is a non-Bumiputera company.

“The valuation by C H Williams in December 2018 was at RM280 mil. The valuation by the Valuation and Property Services Department in April 2020 was at RM224 mil, before THP requested a revaluation and the figure was reduced to RM198 mil,” Marzuk said in the Dewan Rakyat today.

He added that despite most of both companies’ landbank being unplanted, following the review, it was still possible for the government to scuttle the sale.

The sale, Marzuk said, would affect THP’s long-term profitability. According to THP, the initial sale was due to the poor performance of both companies against their project production of fresh fruit bunches.

Marzuk was responding to questions by Tanjong Karang MP Noh Omar and Parit Buntar MP Mujahid Yusof Rawa about the transaction.

Mujahid was also the previous religious affairs minister when the THP divestments were proposed.

At 2.50pm, THP’s shares were last done at 32.5 sen, up 1.5 sen, with 340,600 shares traded. – July 22, 2020

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