SHAH ALAM: KUB Malaysia Bhd
received an almost unanimous 99.9% shareholder approval for the acquisition of a brownfield oil palm plantation land in Sabah at its EGM here on Wednesday.
The acquisition will see its unit KUB Malua Plantation Sdn Bhd purchase 1,534 hectares of land from a unit of Kwantas Corp Bhd for RM100.4mil.
Its president and group MD Datuk Abdul Rahim Mohd Zin said the land was expected to generate immediate revenue and contribute positively to the group's earnings.
He told a press conference that the newly acquired land was expected to contribute 31% to the group's agro sector revenue and about 3% to the group.
The acquisition will increase the group's total plantation landbank to 8,866 hectares from 7,332 hectares currently.
He added that the exercise, expected to be completed by the fourth quarter of 2017, will be funded via internally generated funds as well as bank borrowings.
On its A&W chain of restaurants, Abdul Rahim said they would be opening 25 stores over the next three years as per the franchise agreement renewed in June last year.
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