Boustead Plantations buys Sandakan plantation for RM397m

Scomi Group Bhd surprised investors when it proposed to revise its current issued share capital reduction from RM224.96mil to RM3mil from the earlier RM40mil.

KUALA LUMPUR: Boustead Plantations Bhd is buying  5,531.25 hectares of plantation land in Sandakan inclusive of a 60-tonne per hour palm oil mill from  Sit Seng & Sons Realty Sdn Bhd for an indicative purchase consideration of RM397mil.

It said on Wednesday that its unit  Boustead Rimba Nilai Sdn Bhd had agreed to puchase the entire equity interest in Lubah Plantations (S) Sdn Bhd and Ever-Yield Sdn Bhd which own the plantations.

The plantation land comprise of 17 titles held by the vendor and its subsidiaries in Beluran, Kinabatangan and Labuk and Sugut and a 75-tonne per hour palm oil mill,

The indicative market value of the plantation assets inclusive of the 60-tonne palm oil mill is about RM433mil, based on a statement issued by Boustead Plantation on May 8.