KUB gets share­hold­ers’ nod for oil palm plan­ta­tion land buy

New Straits Times - - Business -

SHAH ALAM: KUB Malaysia Bhd’s share­hold­ers have ap­proved its pro­posed ac­qui­si­tion of a 1,534ha oil palm plan­ta­tion from Kwan­tas Corp Bhd for RM100.4 mil­lion.

KUB pres­i­dent and group man­ag­ing direc­tor Datuk Ab­dul Rahim Mohd Zin said the ac­qui­si­tion would in­crease the group’s to­tal plan­ta­tion land­bank to 8,866ha from 7,332ha cur­rently.

He said the newly-ac­quired land was ex­pected to con­trib­ute 31 per cent to the group’s agro sec­tor rev­enue and about three per cent to the group.

“We ex­pect this pur­chase to be com­pleted by year-end. It will be funded via in­ter­nally-gen­er­ated funds and bank bor­row­ings,” said Ab­dul Rahim at its share­hold­ers’ meet­ing, here, yes­ter­day.

When asked on its A&W chain of restau­rants, Ab­dul Rahim reaf­firmed KUB’s com­mit­ment to a three-year de­vel­op­ment agree­ment end­ing June 2019 with A&W master fran­chisor A Great Amer­i­can Brand LLC.

“We com­ply with the de­vel­op­ment agree­ment, we have to pre­serve the value of the as­set by con­tin­u­ing to in­vest in new stores in com­pli­ance to the (fran­chise de­vel­op­ment) agree­ment,” said Ab­dul Rahim.

The group, he added, has al­lo­cated RM25 mil­lion to con­tinue with ex­pan­sion plans un­der the agree­ment — com­pris­ing eight new stores next year and nine more in 2019.

KUB cur­rently has 35 A&W out­lets through­out Malaysia.

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