Boustead expects crude palm oil price to fare better in the second half of this year
KUALA LUMPUR: Boustead Plantations Bhd
(BPB) seeks to acquire 11,579.31ha of plantation land in the Labuk and Sugut district of Sabah, including all movable fixed assets, machineries and vehicles located there, for an indicative price of RM750mil.
In a filing with Bursa Malaysia, BPB said its wholly-owned subsidiary Boustead Rimba Nilai Sdn Bhd had issued a letter of intent (LOI) for the proposed purchase of 42 parcels of land in the locality of Labuk Road, Sungai Ruku-Ruku and Sungai Lokan to Dutaland Bhd’s indirect unit Pertama Land & Development Sdn Bhd.
The intention to acquire is subject to, among others, Boustead Rimba doing a due diligence exercise for a 30-day period from the date of receipt of the vendor’s acceptance of the LOI (Aug 22) and then reverting to Pertama Land with the decision to proceed with the purchase within 15 days after the due diligence period.
Until Boustead Rimba informed Pertama Land of its decision, the vendor must not discuss. negotiate, make an offer to sell or sell the shares and/or plantation asset to any other third party.
Boustead Rimba has paid RM15mil as refundable 2% earnest deposit of the indicative consideration as part of the LOI terms.
In a separate filing, BPB said its board had resolved to reallocate the balance of RM356.2mil from its initial public offering proceeds towards part or full repayment if bank borrowings for past acquisition of plantation lands. The balance had been allocated for buying plantation lands.
“Consequently, if the intention to acquire (the Sabah plantation assets) materialises, it will be funded via internally generated funds and/or bank borrowings,”
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