BPlant shareholders yes to RM750 million land acquisition

PETALING JAYA: Boustead Plantations Bhd ( BPlant) has obtained shareholders’ approval to acquire 11,600 hectares ( ha) of plantation land in Sugut, Sabah for RM750 million by mid-May 2018.

Vice chairman Tan Sri Lodin Wok Kamaruddin said the oil palm fruit yields from the land were expected to generate an additional RM55 million in revenue for the financial year ending Dec 31, 2018.

He said this at a press conference after attending the company’s annual general meeting and extraordinary general me e t ing her e yesterday.

Lodin said the company aimed to increase its fresh fruit bunches ( FFB) yields at the Sugut land to 17 tonnes per ha in the next t wo to t h re e ye a r s , up from 11 tonnes per ha currently.

“We will replicate what we have done in our G& G Estate in Sabah whereby FFB yields have improved to 22 tonnes per ha in the past two years, up from about 17 tonnes per ha previously,” he said.

On the Sug ut l and purchase, Lodin said the company had monetised its 809.37ha of Malakoff land in Penang for close to RM700 million to buy the land.

“The Malokoff land only generated RM7.4 mi l l ion of revenue, therefore, with the money from selling the land, we are buying this Sabah land that we expect could generate at least RM55 million in revenue,” he said.

Going forward, Lodin does not rule out BPlant monet ising more assets to ensure the sustainability of its revenue and profit.

“This wi l l be done for the right reasons and for the right assets,” he said.

On China’s plan of slapping an additional 25 per cent tax on soybean imported from the United States, Lodin said the move would be positive for the company.

“We believe China will look for an alternative oil, which is palm oil, and China has been one of Malaysia’s largest palm oil importers for so many years,” he said, adding that 2018 would be a good year for the company.

On crude palm oil (CPO) prices, Lodin said he expected the price would improve in the next two months due to higher demand from India and Pakistan for Ramadan preparation.

“The CP O pr i c e s are expected to trade betwe en RM2 ,4 0 0 and RM2,700 a tonne this year,” he said.

He added that all BPlant’s estates would be Malaysian Sus t a inable Palm Oi l cert i f ied by end- 2019 as mandated by the government. — Bernama