PETALING JAYA: TDM Bhd has completed the acquisition of a 70% equity in THP-YT Plantation Sdn Bhd, effectively increasing TDM’s total planted area in Terengganu from 31,346 ha to 33,653 ha.
As THP-YT is now a subsidiary of the group, TDM now assumes control of the management and operations of the 2,594.5 ha Bukit Bidong Estate.
In a press release yesterday, TDM chairman Raja Datuk Idris Raja Kamarudin said the acquisition is part of the group’s overall strategy to improve the average age profile of the oil palms and reduce fluctuation in revenue.
“Under our business development plan, the group is always looking for prospective brown field ventures with the goal of achieving earnings-accretive acquisitions, both within the plantation as well as the healthcare sector.
“TDM is strategically positioning itself to stay competitive in highly challenging market conditions, ” he said.
The 70% equity interest in THP-YT Plantation was acquired from TH Plantations Bhd, with Yayasan Terengganu as the owner of the remaining 30% stake in the company. Raja Idris added that the Bukit Bidong Estate, which comprises three parcels of plantation land located in Setiu, Terengganu, has a younger oil palm age profile of between two to nine years old.
He noted that the acquisition was part of TDM’s plan to expand its plantation locally and gain a larger planted area in Terengganu.
Additionally, Bukit Bidong Estate is located within the vicinity of TDM’s existing mill in Sungai Tong.
As such, the acquisition is expected to optimise the processing capacity and efficiency of fresh fruit bunch (FFB), further reducing the mill processing cost per metric tonne.
“TDM believes that the strategic value creation to be derived from the acquisition will translate into operational efficiencies thus improving profitability in the long run, ” said Raja Idris.
TDM’s wholly-owned subsidiary TDM Plantation Sdn Bhd is certified by the Roundtable on Sustainable Palm Oil (RSPO) and Malaysian Sustainable Palm Oil (MSPO).
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