KUB sells Kinabatangan oil palm estate to Tradewinds 

KUALA LUMPUR: KUB Malaysia Bhd is selling an oil palm estate in Kinabatangan, Sabah to Tradewinds Plantation Bhd.

Under the deal, Tradewinds will pay RM10mil cash to KUB and settle KUB Malua Plantation Sdn Bhd outstanding loans of RM70.36mil with Bank Islam.

"The Proposed Disposal will enable the Company to dispose an underperforming entity within the Group which is not considered as synergistic and cost efficient to the Group’s oil palm plantation businesses," KUB said in a filing with Bursa Malaysia today.

It added that the proposed disposal will also enable the Group to strengthen its financial position by reducing its overall debt level and interest expenses significantly following the de-consolidation of KUB Malua’s bank borrowings.

"With greater financial flexibility, KUB is able to redeploy its capital and resources for the expansion of its other businesses," it said.

The market value of the KUB Malua estate was estimated at RM100mil, according to an independent registered valuer, Azmi & Co (Sabah) Sdn Bhd.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3

KUB Malaysia , Tradewinds Plantation


Next In Business News

Tricor apologises for Maybank AGM rescheduling
CIMB Group underlying business proves resilient in FY20 despite pandemic effects
Pertama Digital increases court bail limit to RM500k via eJamin
UMW vehicle sales up 35% in 1Q21
UOB Malaysia reiterates commitment to support country's transition to cleaner energy
Maybank to reschedule 61st AGM
LPI posts improved 1Q net profit of RM82.31mil
Press Metal, glove stocks lift FBM KLCI
Strong oil prices lift ringgit at opening
Bond issuance in March at 22-month high

Stories You'll Enjoy