KUALA LUMPUR: TSH Resources Bhd
has proposed a series of related-party acquisitions to expand its oil palm plantation footprint in Indonesia.
In a filing with Bursa Malaysia, the plantation group said its indirect subsidiary PT Sarana Prima Multi Niaga has entered into a conditional agreement to acquire a 99.99996% equity interest in PT Dinamika Alam Segar for about RM1.28mil.
Another indirect subsidiary, PT Mitra Jaya Cemerlang, will acquire the remaining 0.00004% stake in Dinamika for 2,200 Indonesian rupiah (about RM1), giving the group full ownership.
Separately, TSH has entered into a share sale agreement with Kelvin Tan Aik Pen and Tan Aik Sim to acquire 100% equity interest in Konsep Majureka Sdn Bhd for RM35.03mil, comprising RM22mil for the shares and the assumption of RM13.03mil in liabilities.
TSH said Dinamika owns plantation land in Central Kalimantan, Indonesia, with about 787 ha of plantable area located near its existing estates and mill. The acquisition is expected to enhance operational efficiency and provide economies of scale.
Konsep Majureka, meanwhile, holds a 90% stake in PT Katingan Mitra Sejati, which owns plantation land close to TSH’s existing operations.
TSH said the enlarged land bank is expected to support future expansion and the potential development of a palm oil mill to reduce logistics costs.
The acquisitions are expected to be completed in the second half of 2026 and will be funded via internally generated funds.
Additionally, TSH said the transactions are not expected to have any material impact on its earnings, net assets or gearing for the financial year ending Dec 31, 2026, but are anticipated to contribute positively to future earnings.
