KUALA LUMPUR: KUB Agro Holdings Sdn Bhd (KUBAH), an indirect wholly-owned subsidiary of KUB Malaysia Bhd
(KUB), has entered into a share purchase agreement (SPA) with Sinong Enterprise Sdn Bhd (SESB) for the disposal of 70 per cent of KUBAH’s equity interest in KUB Sepadu Sdn Bhd (KUBS) for RM103.37 million.
KUB said in a stock exchange filing that the proposed disposal consists of 4.55 million ordinary shares and is expected to be completed by the second quarter of 2025.
The principal activities of KUBS are the cultivation of oil palm and the management of oil palm estates. It owns two oil palm estates measuring an aggregate of 4,614.53 hectares in Mukah, Sarawak.
The company said the proposed disposal is a viable proposal for it to partially realise its investments in KUBS estates and limit the required financial resources for the upkeep and maintenance of KUBS estates going forward.
"The group will be able to allocate the proceeds arising from the proposed disposal for its other core businesses and intends to use part of the proceeds for its business expansion including but not limited to potential acquisitions or investments in similar or other complementary businesses/assets,” it said.
"The proposed disposal provides an opportunity for KUB to realise a pro forma gain on disposal of RM19.65 million and is expected to improve the net assets and earnings of the group.
"Consequently, the group will be better positioned to provide higher sustainable returns to the shareholders of KUB,” it added. - Bernama
