KUALA LUMPUR: KUMPULAN FIMA BHD [] is acquiring an 80% stake representing 126,800 shares of RM1 each in Victoria Square PLANTATION [] Sdn Bhd (VSP) from Network Jaya Bhd for RM21 million cash.
In a filing to Bursa Malaysia on Monday, Oct 25, Kumpulan Fima said VSP holds 650,000 shares of RM1 each, representing 65% of the total paid-up capital in Amgreen Gain Sdn Bhd.
Amgreen is a joint-venture company between VSP, Board of Trustees of the Sarawak Foundation and Amanah Khairat Yayasan Budaya Melayu Sarawak to undertake the development of a land measuring 5,000ha in Sarawak.
Kumpulan Fima said that based on Amgreen's latest audited financial statements for the year ended Oct 31, 2009, the net book value of the land was RM4.25 million.
It said the land was to be used for agricultural purposes as well as for production and processing of crops.
It said the expected cost of developing the land into an oil palm plantation over the next five years was RM70 million.
On the rationale of its acquisition of a stake in VSP, the company said it was a strategic investment in line with its expansion programme to enhance earnings in the long run.
'The long-term prospects are expected to be positive, driven by the expected increase in the demand for edible oils in tandem with global population growth; and the competitive advantage of palm oil compared to other edible oils in terms of yield and cost efficiency,' it said.
Kumpulan Fima closed four sen higher at RM1.32 with 625,000 shares traded on Oct 25.
In a filing to Bursa Malaysia on Monday, Oct 25, Kumpulan Fima said VSP holds 650,000 shares of RM1 each, representing 65% of the total paid-up capital in Amgreen Gain Sdn Bhd.
Amgreen is a joint-venture company between VSP, Board of Trustees of the Sarawak Foundation and Amanah Khairat Yayasan Budaya Melayu Sarawak to undertake the development of a land measuring 5,000ha in Sarawak.
Kumpulan Fima said that based on Amgreen's latest audited financial statements for the year ended Oct 31, 2009, the net book value of the land was RM4.25 million.
It said the land was to be used for agricultural purposes as well as for production and processing of crops.
It said the expected cost of developing the land into an oil palm plantation over the next five years was RM70 million.
On the rationale of its acquisition of a stake in VSP, the company said it was a strategic investment in line with its expansion programme to enhance earnings in the long run.
'The long-term prospects are expected to be positive, driven by the expected increase in the demand for edible oils in tandem with global population growth; and the competitive advantage of palm oil compared to other edible oils in terms of yield and cost efficiency,' it said.
Kumpulan Fima closed four sen higher at RM1.32 with 625,000 shares traded on Oct 25.
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