Kim Loong buys palm oil estates in Sabah for RM92.5mil


  • Plantations
  • Wednesday, 19 Feb 2020

KUALA LUMPUR: Kim Loong Resources Bhd is buying close to 2,900 acres of fully cultivated palm oil plantation in Kinabatangan, Sabah in four separate deals worth a combined RM92.5mil.

The company, in a filing with Bursa Malaysia today, said the purchase price valued the estates at about RM32,500 per acre.

"The purchase prices are fair and reasonable considering the palm age profile, well-maintained condition of plantations by the Vendors, accessibility and good location nearby the group’s existing plantations," it said.

Kim Loong on Wednesday entered into four separate deals to acquire the plantations.

The company said it has not commissioned any independent valuation of the acquisitions prior to entering into the sales and purchase agreements (SPAs).

"However, the board of directors of Kim Loong is of the view that the purchase prices are fair and reasonable and the acquisitions are in the best interest of the group," it said.

The first conditional SPA was for the purchase of two palm oil plantations, each measuring 498 acres and 140 acres, from Greenfingers Sdn Bhd for RM16.18mil and RM4.5mil respectively.

The second conditional SPA was with R&H Sdn Bhd for the purchase of 964 acres of plantation land for RM31.2mil.

The third deal was to acquire 368 acres of land from Bakti Perusahaan Sdn Bhd for RM11.97mil.

Kim Loong has also entered conditional SPA with Sri Handal Sdn Bhd to 892 acres for RM28.66mil.

"The acquisitions will increase the supply of fresh fruit bunches (FFB) to the group’s palm oil mill at Telupid, Sabah so as to contribute towards optimising utilisation of the mill’s processing capacity as well as to reduce dependence on FFB supply from third parties especially during a seasonal low crop period," it said.

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Kim Loong , palm oil , Sabah

   

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