Tuesday, December 6, 2011

Wijaya Baru gets shareholder nod to buy timber, palm oil concessions

KUALA LUMPUR (Dec 6): WIJAYA BARU GLOBAL BHD [] received shareholder approval for the acquisition of US$80 million in timber and palm oil concessions from Wealth Gate Pte Ltd and Suffolk Pte Ltd.

Its chairman Datuk Seri Abdul Azim Mohd Zabidi said on Tuesday after the company's EGM that Wijaya would be acquiring 100% of Suffolk and Wealth Gate's shares which will grant the company ownership of two 40,000 hectre plots of land in Irianjaya which have the rights to be converted into palm oil PLANTATION []s.

The land is currently covered in virgin forests and Wijaya will be extracting timber from it.

Wijaya has no plans to undertake palm oil plantation operations in the future, but told press that the option is there, he said.

The acquisition should be completed by the end of the year when Wijaya secures funding, which will be 80% debt.

Abdul Azim said that timber extraction activities may begin as early as 2Q 2012, once RM40 million worth of infrastructure, including a sawmill, was in place.

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