KUALA LUMPUR: KULIM (M) BHD [] is expanding its oil palm PLANTATION [] landholdings in Malaysia by 40% to 48,100ha after it acquired six parcels of oil palm plantation land totalling 13,687ha from Johor Corporation as part of a RM700 million deal.
Under the arrangement, it also acquired two palm oil mills in Johor from Johor Corp, increasing its total number of mills to five.
In a statement Tuesday, Aug 16, Kulim managing director Ahamad Mohamad said the company had been managing these estates for JCorp since 1975, and had also persistently pursued with JCorp the possibility of an outright purchase of these estates.
'As such, this proposed transaction is indeed an excellent opportunity as it will enable Kulim to have a direct and full share of the income and cashflow generated by these estates, as opposed to just earning management fees.
'We view this proposed transaction as being strategic and synergistic for Kulim.'
Kulim said the acquisition would be financed by a combination of internally generated funds and external borrowings.
Earlier, the company had announced plans to privatise its 75% subsidiary SINDORA BHD [] by offering to acquire the remaining 23.5 million Sindora shares it does not already own via a voluntary general offer exercise.
The acquisition will be satisfied via a cash payment of RM3 per Sindora share.
Under the arrangement, it also acquired two palm oil mills in Johor from Johor Corp, increasing its total number of mills to five.
In a statement Tuesday, Aug 16, Kulim managing director Ahamad Mohamad said the company had been managing these estates for JCorp since 1975, and had also persistently pursued with JCorp the possibility of an outright purchase of these estates.
'As such, this proposed transaction is indeed an excellent opportunity as it will enable Kulim to have a direct and full share of the income and cashflow generated by these estates, as opposed to just earning management fees.
'We view this proposed transaction as being strategic and synergistic for Kulim.'
Kulim said the acquisition would be financed by a combination of internally generated funds and external borrowings.
Earlier, the company had announced plans to privatise its 75% subsidiary SINDORA BHD [] by offering to acquire the remaining 23.5 million Sindora shares it does not already own via a voluntary general offer exercise.
The acquisition will be satisfied via a cash payment of RM3 per Sindora share.
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