TH Plantations Bhd (THP) today accepted an offer to acquire plantation assets from its major shareholder, Lembaga Tabung Haji, for RM525.6 million, to be completed in the fourth quarter of this year, will double the size of the plantation land bank to 90,671 hectares from 44,933 hectares

TH Plantations Bhd (THP) today accepted an offer to acquire plantation assets from its major shareholder, Lembaga Tabung Haji, for RM525.6 million.

The transaction, expected to be completed in the fourth quarter of this year, will double the size of the plantation land bank to 90,671 hectares from 44,933 hectares.

The areas planted with oil palm will increase to 57,407 hectares from 38,154 hectares, RHB Investment Bhd announced on behalf of THP in a filing to Bursa Malaysia Securities.

It will also diversify THP's earnings as the 15,714 hectares of land in Sabah will be earmarked for planting and replanting rubber trees.

THP will pay for the acquisition by issuing new shares to Lembaga Tabung Haji.

The proposed acquisition comprise the entire equity interest in TH Ladang (Sabah and Sarawak) Sdn Bhd for RM518 million to be satisfied via the issuance of 202.344 million new THP Shares at an issue price of RM2.56 a share, and proposed acquisition of 70 per cent equity interest in TH Bakti Sdn Bhd for RM17.640 million to be satisfied via the issuance of 6.891 million THP shares.

THP will also undertake an increase in the authorised share capital of the company from the existing RM350 million comprising 700 million THP shares to RM500 million comprising one billion THP shares. -- Bernama

Source: www.btimes.com.my