TH Plantations sells Negri Sembilan land for RM152mil

Pix courtesy of TH Plantations Bhd

KUALA LUMPUR: TH Plantations Bhd has sold off its entire oil palm estate land in Negri Sembilan measuring 2,819.27ha as well as a palm oil mill for RM152mil in order to pare down its borrowings.

In a filing with Bursa Malaysia on Friday, the company said it had signed an agreement to dispose its 100% equity interest in THP Gemas Sdn Bhd, which owns the eight parcels of agricultural land in Tampin along with a mill with 10-tonnes-per-hour capacity, to Dupont & Leosk Enterprises Sdn Bhd.

TH Plantations, which is 73.8% owned by Lembaga Tabung Haji, said the proposed share disposal was expected to result in a net gain to the TH Plantations group of about RM109.7mil or a gain of about 12 sen per THP share.

“Assuming that proceeds from the proposed disposal are used for the repayment of borrowings, the net gearing of the THP group is expected to be reduced from 0.78 times to 0.68 times,” it said.

Based on the valuation of C H Williams Talhar & Wong Sdn Bhd, the net market value of the Gemas lands and mill as of Oct 22 was RM155mil.

THP Gemas’ net profit halved (-49.3%) from RM7.7mil in 2013 to RM3.8mil in 2015.

TH Plantations expects to complete the share disposal by next month.