KUALA LUMPUR:: NPC Resources Bhd
(NPC) unit Transglobe Enterprise Sdn Bhd has signed an sale agreement with Ladang Sri Harapan (Sabah) Sdn Bhd to dispose of agricultural land in Sabah to the latter for RM74.05 million.
The proposed disposal of 18 parcels (0.81ha) of land is expected to be completed in the fourth quarter of this year, NPC said in a filing to Bursa Malaysia.
"The properties are currently being utilised for cultivation of oil palm, contributing less than 6% to NPC's net profit and less that 2% to NPC's total revenue in the financial year ended Dec 31, 2014.
"In view of the past performance of fresh fruit bunches yield, the properties are the least performing contributors to the group," it said.
NPC, an investment holding company, said the proposed disposal would enable the group to raise funds for the development of its remaining plantations and reduce its gearing.
On completion of the proposed disposal, NPC will still own 11,713ha of plantation land in Sabah and 29,938ha in Indonesia.
The proposed disposal will enable NPC to accelerate its planting programme to develop its remaining unplanted plantation land.
Upon maturity, the board expects the remaining plantation land to contribute significantly towards the groups financial performance. - Bernama
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