KUALA LUMPUR: Sarawak Oil Palms Bhd (SOPB) has entered into a conditional share sale agreement with Shin Yang Holding Sdn Bhd (SYHSB), to acquire 40 per cent equity interests in SOP Plantations (Sabaju) Sdn Bhd (SOP Sabaju) for a cash consideration of RM45.88 million.
In a filing with Bursa Malaysia today, SOPB said the proposed acquisition involves the remaining 6.20 million shares in SOP Sabaju, adding that the purchase is expected to be completed by end of the second quarter of 2021.
"The equity interest shall be acquired by the SOPB from SYHSB free from all claims, charges, liens and encumbrances together with all the rights attached thereto, and all dividends, rights, and distributions, declared, paid or made in respect thereof, from the date of completion,” it said.
It said the proposed acquisition is expected to provide SOPB with an opportunity to expand its equity participation and ownership in the palm oil-related activities in Sarawak.
"It is also expected to improve the age profile of the oil palms held by the SOPB group as the plantation held by SOP Sabaju consist of young mature oil palms,” said SOPB.
The acquisition is expected to provide steady revenue and earnings to the group in the medium to long-term, it said.
SOP Sabaju is principally engaged in the development of oil palm plantation, and is currently a 60 per cent-owned subsidiary of SOPB. - Bernama