KUB gets shareholders’ nod for oil palm plantation land buy

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.