Pun­cak Ni­aga en­ters oil palm plan­ta­tion biz

> Unit ac­quir­ing Danum Si­nar Sdn Bhd, which owns land in Sarawak partly planted with the crop


PETALING JAYA: Pun­cak Ni­aga Hold­ings Bhd is ex­pand­ing into the oil palm plan­ta­tion busi­ness through the ac­qui­si­tion of all of Danum Si­nar Sdn Bhd for RM446.51 mil­lion in cash.

In a fil­ing with the stock ex­change, Pun­cak Ni­aga said Danau Semesta Sdn Bhd, a 60%-owned com­pany of Murni Es­tate Sdn Bhd, which in turn is a wholly owned sub­sidiary of Pun­cak Ni­aga, has en­tered into a sale and pur­chase agree­ment with Shin Yang Hold­ing Sdn Bhd for the ac­qui­si­tion.

Danum Si­nar is the reg­is­tered pro­pri­etor and has le­git­i­mate ex­pec­ta­tion from the Sarawak state gov­ern­ment for the is­suance of the pro­vi­sional lease of cer­tain parcels of land in an ap­prox­i­mate to­tal area of 46,674 hectares in Sarawak.

The ma­jor­ity of the land held by Danum Si­nar is va­cant plantable ar­eas, and, of the to­tal planted por­tion, the ma­jor­ity of the area is filled with young palms with a longer har­vest­ing pe­riod.

Based on the lat­est au­dited fi­nan­cial state­ment for the fi­nan­cial year ended June 30, 2015, Danum Si­nar recorded a net loss of RM3.7 mil­lion on the back of RM15.1 mil­lion in net as­sets.

The pro­posed ac­qui­si­tion is in line with Pun­cak Ni­aga’s over­all vi­sion in max­imis­ing re­turns to the Pun­cak Ni­aga group with di­rect in­volve­ment in the plan­ta­tion sec­tor that has proven to be a sus­tain­able busi­ness, fol­low­ing the dis­posal of its wa­ter treat­ment and distri­bu­tion busi­ness to the Se­lan­gor state gov­ern­ment in October 2015.

Pun­cak Ni­aga said the ac­qui­si­tion presents an op­por­tu­nity, be­ing both at­trac­tive strate­gi­cally (given the size­able land­bank un­der one ti­tle) and fi­nan­cially to the group to ven­ture into the oil palm plan­ta­tion sec­tor, that has the abil­ity to gen­er­ate a steady flow and re­cur­ring source of in­come over a long pe­riod of time, through good agri­cul­tural prac­tice.

“The pro­posed ac­qui­si­tion is ex­pected to con­trib­ute pos­i­tively to the fu­ture rev­enue growth and earn­ings of Pun­cak,” it noted.

Pun­cak Ni­aga has been in search of new busi­nesses fol­low­ing the dis­posal of its wa­ter as­sets to the Se­lan­gor gov­ern­ment for RM1.56 bil­lion.

In April 2016, Pun­cak Ni­aga’s an­nounced plans to ac­quire the busi­nesses of con­struc­tion and prop­erty firm TRI­plc Bhd, a com­pany which its ex­ec­u­tive chair­man Tan Sri Rozali Is­mail him­self owns a sub­stan­tial stake. They have un­til Novem­ber to sign a de­fin­i­tive agree­ment for the deal.

The group’s stock closed 1 sen lower yes­ter­day at RM1.14 with some 399,000 shares chang­ing hands.

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.