OHB enters into multiple proposed acquisitions worth RM1.2bil

KUALA LUMPUR: Oriental Holdings Bhd (OHB) will acquire the remaining stakes in three plantation companies as well as plantation estates in Peninsular Malaysia for a total cash consideration of about RM1.2 billion.

In a filing with Bursa Malaysia today, the company said it has entered into two conditional share sale agreements with Boon Siew Sdn Bhd (BSSB) to acquire the remaining 49.5 per cent equity interest each in Selasih Permata (SPSB) for RM646.93 million and Oriental Boon Siew (Mauritius) Pte Ltd for RM1, respectively.

OHB said the purchase consideration of Selasih Permata would be satisfied through a combination of bank borrowings and/or internally generated funds while the acquisition of Oriental Boon Siew Mauritius would be satisfied entirely through cash.

It said OHB has also entered a conditional share sale agreement to acquire the balance of 60.50 per cent stakes in Southern Perak Plantations Sdn Bhd from BSSB, Boon Siew Development Sdn Bhd and Loh Boon Siew Holdings Sdn Bhd for RM155.33 million, to be satisfied through a combination of bank borrowings and/or internally generated funds.

Simultaneously with the proposed share acquisitions, it said OHB has entered into conditional sale and purchase agreements with Boontong Estates Sdn Bhd to acquire oil palm plantations in Seberang Perai Tengah, Penang for RM41 million, Bentong, Pahang for RM132 million and in Kuala Muda, Kedah for RM224.1 million, respectively.

"The proposals undertaken are hence in line with OHB’s strategy of constantly seeking opportunities to acquire resilient and earnings accretive businesses or to unlock the value of its investments for the benefit of the shareholders of OHB,” it said.

It added that barring any unforeseen circumstances, the proposed share acquisitions were envisaged to be completed by the first quarter of 2023 and the proposed land acquisitions to be completed in the first half of next year. - Bernama