Wednesday, October 12, 2011

TAHPS Group's RM108m plantations purchase in Terengganu

KUALA LUMPUR: TAHPS GROUP BHD [] is buying Yee Seng PLANTATION []s Sdn Bhd, which owns more than 4,000 ha of agriculture land in Terengganu, for an indicative consideration of RM108 million.

TAHPS said on Wednesday, Oct 12 that it was acquiring Yee Seng, which owns 2,012 ha of plantation land in Kertih, and 2,023 ha of agricultural land in Pasir Raja district, together with other assets and liabilities.

'The proposed acquisition will provide an opportunity for TAHPS to diversify from its dependence on property development. The proposed acquisition also represents an opportunity for TAHPS to expand its present Gali Estate Plantation business and is expected to bring synergistic benefits to the TAHPS Group,' it said.

TAHPS said it had received a conditional acceptance from Equiharvest Sdn Bhd, through its liquidator, to sell 1.50 million shares or 99.99% of Yee Seng for RM108 million.

It added the indicative consideration of RM108 million was based on the audited net assets of Yee Seng as at July 31, 2011 after incorporating the company's estimate of value for the plantation lands and agricultural lands.

Equiharvest is currently under members' voluntary liquidation and it owns 99.99% of Yee Seng.

TAHPS said as Equiharvest is a major shareholder in TAHPS and certain directors of TAHPS are also directors of Equiharvest and Yee Seng, the proposed acquisition, if undertaken, would be deemed a related party transaction.

TAHPS said it would appoint an independent adviser to advise its non-interested directors and shareholders.

'If the proposed acquisition is undertaken, the company will fund the purchase consideration by internally generated funds,' it said.

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