PETALING JAYA: Rimbunan Sawit Bhd
(RSB) is disposing of a parcel of land measuring approximately 1,504 hectares situated at Batang Baram, Baram in the Miri division of Sarawak, to Trinity Capital Resources Sdn Bhd for RM28mil.
In a filing with Bursa Malaysia, the oil palm company said the proposed disposal will enable RSB to discontinue incurring high transportation costs associated with the remote location of Sastat Estate which lacks integration with other existing estates and mills within RSB and its group of companies, and avoid RSB from making further investment into Sastat Estate to render it profitable.
“The proposed disposal will in turn, allow RSB to concentrate resources on more profitable and better integrated estates and mills, thereby enhancing overall efficiency.”
RSB said the disposal consideration is intended to be utilised for working capital purposes, including defraying expenses in connection with the disposal and for investment and development of viable potential estate within 12 months from the date of receiving the disposal consideration.
