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Tuesday, October 25, 2016

Ta Ann acquires over 5,000ha in Sarawak for RM211mil

Monday, 24 October 2016 | MYT 11:57 PM

BY M. HAFIDZ MAHPAR

KUALA LUMPUR: Ta Ann Holdings Bhd will boost its plantation land by 5,280ha through the proposed acquisition of the entire equity interest in Agrogreen Ventures Sdn Bhd for RM211.14mil.

In a filing with Bursa Malaysia, the Sarawak-based timber and palm oil producer said it had on Monday inked three separate conditional share sale agreements to acquire 100% equity interest in Agrogreen.

Agrogreen’s main assets are its mineral soil land bank of 5,280ha in Lundu, Sarawak, of which more than 5,090ha have been planted with oil palms age one to five years old. Based on the planted acreage reported in its latest annual report, this would increase its planted area by over 6% to 87,372ha.

One of Agrogreen’s shareholders, Mohamad Sabry Othman (holding a 15% stake), also sits on the boards of two of Ta Ann’s subsidiaries representing the interest of Lembaga Amanah Kebajikan Masjid Negeri Sarawak.

Ta Ann said the proposed acquisition was a strategic investment in vuew of the scarcity of “sizeable suitable” oil palm plantation land in Sarawak.

“With over 90% of the land having been planted with oil palms, the proposed acquisition will contribute to the group’s fresh fruit bunch production and thereby to the futire earnings of the group,” it added.

The proposed purchase is expected to be completed during the first half of next year.

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