This comes after IJM Plantations emerges as takeover target
THE IJM Group came under the spotlight this week after news that its oil palm plantation company – IJM Plantations Bhd – has emerged as a takeover target.
Talk is that there is more than one suitor vying for the company, which has matured plantation hectarage in Sabah and Indonesia.
IJM Plantations is said to be a takeover target of the big boys of the industry, namely, IOI Corp Bhd , Hap Seng Plantations Holdings Bhd and Kuala Lumpur Kepong Bhd (KLK).
Industry experts say there is increased appetite for local plantation companies to acquire existing oil palm plantations to expand their hectarage instead of greenfields.
“The current preference for brownfields among big plantation companies is mostly due to major changes in the global oil palm sustainability requirement scene,” says an analyst.
KUB Malaysia Bhd had earlier completed the acquisition of 1,534 ha of brownfield oil palm plantation land in Sg Kinabatangan, Sabah, for RM100.5mil.
Analysts reckon that IJM Plantations’ takeover could fetch between RM2.1bil and RM3.1bil.