The Week That Was - M&A, digital ambition, factories shut


IOI Corp owns 178, 068ha of planted estates. The acquisition of NPC estates will add 11, 630ha, or about 2.6% to its landbank.

Appetite for M&A

IOI Corp Bhd made a RM281mil offer to NPC Resources Bhd to acquire the group’s oil palm plantations in Sabah.

NPC Resources said it has accepted the offer.

IOI Corp owns 178, 068ha of planted estates. The acquisition of NPC estates will add 11, 630ha, or about 2.6% to its landbank.

On Wednesday, TSH Resources Bhd said it had entered into a deal with Sharikat Keratong Sdn Bhd to dispose of around 3, 000ha of oil palm estates in Sabah for RM248mil.

The recent spate of deals in the plantation sector came on the back of Kuala Lumpur Kepong Bhd’s huge offer to takeover IJM Plantations Bhd, announced in June.

Given the current global shortage of edible oils, most analysts expect crude palm oil (CPO) prices to remain at elevated levels, boosting planters’ cash pile and whetting their appetite for merger and acquisition or M&A activities.


According to CGS-CIMB Research. the average price of CPO has surged 120% to RM3, 831 a tonne in June compared from where it was a year ago.

Digital ambition

AirAsia Bhd on Wednesday bought over Gojek’s business in Thailand for RM208mil as the budget airline builds up its Asia Super App in the Asean region.

The all-share deal would see the Indonesian tech unicorn take a 4.76% stake in AirAsia’s own “Super App” business.

AirAsia Digital, including the company’s non-airline businesses, includes food and fresh food delivery, courier services, an e-commerce platform and a payment gateway.

Tan Sri Tony Fernandes, CEO of airasia Group flagging off the first shipment of Harumanis mangoes to Sabah by airasia farm at the Kuala Lumpur International Airport (klia2). — YAP CHEE HONG/The StarTan Sri Tony Fernandes, CEO of airasia Group flagging off the first shipment of Harumanis mangoes to Sabah by airasia farm at the Kuala Lumpur International Airport (klia2). — YAP CHEE HONG/The Star

A unit, BigPay has applied to Bank Negara for a digital banking licence with a consortium of strategic partners.

AirAsia Group CEO Tan Sri Tony Fernandes said there are plans to list the group’s digital business in the United States this year.

Factories stay shut

SHARES in glove makers came under renewed downward pressure this week amid fears that earnings will suffer as their factories in Selangor remained shut due to the enhanced movement control order (EMCO).

According to the Malaysia Rubber Glove Manufacturers Association, some 58% of all Malaysia-produced gloves are made in glove plants in Selangor, the state with the most areas under the EMCO amid the latest Covid-19 wave.

gloves rubbergloves rubber

Malaysia is the world’s biggest producer of gloves which are essential for frontliners in the fight against the pandemic.

A prolonged production halt is expected to cause a short-term supply disruption worldwide, but it would be unfavourable to the local players if their overseas buyers shifted their orders elsewhere.

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