KUALA LUMPUR: In a move to diversify revenue and earnings ,PLS Plantations Bhd (PLS) through its unit, Brighthill Synergy Sdn Bhd, is venturing into the durian business by acquiring a 70% share in Dulai Fruits Enterprise Sdn Bhd (Dulai Fruits) for RM21mil.
In a statement today, PLS said the acquisition would be made through the issuance of 24 million ordinary shares in PLS at 75 sen per share totalling RM18mil and RM3mil, in cash, through the subscription of 600,000 new ordinary shares in Dulai Fruits.
PLS executive director Lee Hun Kheng said taking into account the strong growth prospects for the durian business in Malaysia and given the soaring potential in China, the company was optimistic that the strategic acquisition would bring forth positive earnings to the group in the long-run.
Dulai Fruits, a pioneer in exporting durians with 30 years of durian plantation experience, has successfully penetrated China, Hong Kong, Australia and the United States, and is a licenced exporter and importer of durians for Malaysia and China. - Bernama