Socfin estates for sale snapped up

BY HANIM ADNAN

SOCFIN Plantations Sdn Bhd's last remaining oil palm estates in Malaysia, totalling some 14,963ha and recently put up for sale via tender, has been snapped up by two Malaysian groups, public-listed United Plantations Bhd and investment holding group Achi Jaya. 

United Plantations executive director (finance and marketing) Martin Bek-Nielsen told StarBiz yesterday the plantation group had signed a sale and purchase agreement to acquire 2,889ha of Lima Blas Estate in Ulu Selangor comprising an oil palm estate with workers' quarters, staff and executive bungalows, club-house and a 30-tonne oil mill for RM118mil in cash. 

“We hope to conclude the acquisition by the second half of next year,” he added. 

Bek-Nielsen described the acquisition as “strategic” due to its close proximity – about 200 metres – to United Plantations' existing Ulu Basir estate in southern Selangor. 

He said the group was pleased with the acquisition of Socfin's prime plantation; its high yield potential based on the age of the palm trees – between nine and 16 years. 

Meanwhile, Socfin Plantations' 12,074ha estate in Labis, Johor, was taken up by low profile conglomerate Achi Jaya, believed to be closely linked to Datuk Onn Mahmud, a director of public listed Cahya Mata Sarawak Bhd. 

A source said Achi Jaya was expected to pay about US$132mil for the oil palm estate, together with workers' quarters, staff and executive bungalows, clubhouse, a 9-hole golf course, a 60-tonne oil mill as well as other facilities and amenities. 

Socfin has been active in plantation operations since early 1900 and used to own huge land banks throughout Malaysia, including Damansara Heights and Bangsar. 

Meanwhile, an AFX report from Paris quoted Bollore Investissement general secretary Michel Roqueplo as saying that the sale of its Malaysian palm oil operations would generate capital gains of around 130 million euros in its 2004 results.