KUALA LUMPUR: TH Plantations Bhd (THP) has sold Bumi Suria Ventures Sdn Bhd (BSV) and Maju Warisan Sdn Bhd (MW) to Tamaco Plantation Sdn Bhd for RM170 mil.
The companies own 6,513.80ha of oil palm plantations in Bintulu and Sibu, Sarawak, said THP in a filing with Bursa Malaysia on Dec 5.
BSV cultivates oil palm and sells fresh fruit bunches (FFB) while MW mainly lets out investment properties.
The price is a discount of about RM13.9 mil or 7.6% of the lands’ market value, according to an independent registered valuer, THP said.
The original investment cost in BSV and MW was RM221.70 mil and RM42.49 mil respectively, it added.
“The disposals are part of THP’s rationalisation plan to revive its financial performance through the divestment of assets to reduce borrowings and improve operational efficiency.
“The disposal of the companies was driven by their poor performance against the projected production of FFB,” it said.
With the sale, THP expects to improve its gearing ratio from 1.09 times to 0.94 times and reduce its profit margin expenses by about RM9.41 mil a year.
Following the sale, the THP Group’s land banks are at 94,462.08ha, comprising oil palm and rubber plantations. – Bernama
