The timber and palm oil producer said in its filings yesterday that it had entered into a share sale agreement with Cermat Ceria Sdn Bhd for the proposed acquisition of 84.97 million shares in SPB for RM2 per share.
“The proposed acquisition is consistent with the company’s plan to further expand its oil palm plantation business and gain larger market access in Sarawak,” Ta Ann said.
It said the purchase consideration would be funded via internally generated funds and/or bank borrowings.
Ta Ann said its planted area would likely be enlarged by about 23%, given the group’s 30.39% stake in SPB.
SPB is principally involved in the cultivation of oil palm and the processing of fresh fruit bunches into crude palm oil and palm kernel.
As at Dec 31, 2016, SPB owned 20 oil palm estates, with a total planted area of 34,837ha, which were made up of 26,825ha of matured area and 8,012ha of immature area (less than three years).
SPB’s oil palm estates are predominantly located at Niah and Mukah in Sarawak. Ta Ann’s shares fell two sen yesterday to close at RM3.51.
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