Under the contracts, the company will supply, deliver, install, test, provide training, commission and maintain the hardware, computer software and Speks for Selangor, Malacca, Negri Sembilan, Pahang, Terengganu, Johor, Perak, Penang and Kelantan.
The Speks roll-out is expected to be completed next year, according to a Lityan statement to the KLSE yesterday.
Under the agreements, KJSB is required to furnish to the government a performance bond equivalent to 5% of the contract value to guarantee the due performance of the agreement by the company.
According to the statement, the Speks roll-out is expected to have a material effect on the consolidated net tangible assets and earnings of the Lityan group for the financial year ending Dec 31.
In a statement, the company said the acquisition was an extension of its existing business and would improve its long-term cash flow. It pointed out that the proposed acquisition would increase its plantation land in Sarawak by 53% or 13,888ha to 40,338ha.
“The additional plantation lands will provide Sarawak Oil Palms with 2,382ha of mature plantation ranging from three and four years, and 4,151ha of immature plantation ranging from one and two years,” it said.
Sarawak Oil Palms also said that on completion of the purchase of Shin Yang, it intended to increase the planted area of Shin Yang’s estates from the existing 6,533ha to 10,700ha by 2005.
Apart from that, the firm said, the acquisition would also enable its Lambir mill to operate on higher economies of scale. Currently, the mill is operating below optimum production capacity due to insufficient internal and external supply of fresh fruit bunches (FFB) for processing.
Sarawak Oil Palms said the proposal is expected to be completed by the second half of 2003 – AFX
Under the contracts, the company will supply, deliver, install, test, provide training, commission and maintain the hardware, computer software and Speks for Selangor, Malacca, Negri Sembilan, Pahang, Terengganu, Johor, Perak, Penang and Kelantan.
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