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

TH Plantations reported decline of 40% in net profit to RM 13mil affected by higher production costs, Maybank Research says results underperformed and accounted only 10% of its FY12 forecast, target price RM 2.75 (HOLD)

(THPLANT opening stock price today (25.4.2012) was RM 2.81)

TH Plantations Bhd's share price slipped to a low of RM2.74 on Wednesday after it posted lower net profit in the first quarter ended March 31, 2012.

At 11.19am, the share price was down seven sen to RM2.74. There were 547,500 shares traded at prices ranging from RM2.74 to RM2.80.

TH Plantations reported a decline of 40.1% in net profit to RM13.06mil from RM21.83mil a year ago as its profitability was affected by higher production costs.

However, its revenue rose 26.6% to RM95.04mil from RM75.05mil while earnings per share were 2.53 sen compared with 4.36 sen.

Maybank Investment Bank Research said the results underperformed. It said the RM13mil core net profit (down 40% on-year, down 65% on-quarter) accounted for just 10% and 12% of its and consensus FY12 forecasts respectively.

"The shortfall is due to higher-than-expected cost and taxes. We maintain our earnings estimates for now pending further clarification from management.

"However, the underperformance could trigger short-term weakness in its share price, but mitigated by its upcoming payment of 2011 final DPS of 12.5sen a share. Maintain HOLD with an unchanged target price of RM2.75 (11 times 2013 price-to-earnings ratio).

Source: www.thestar.com.my

TH Plantations acquisition of 19,782 hectares of oil palm plantation land in Sarawak and East Kalimantan for RM 92 mil to be completed by 3rd Quarter 2012, raising to a total plantation land of 59,154 hectares

(THPLANT opening stock price today (25.4.2012) was RM 2.81)

TH Plantations Bhd, in a move to expand its land bank, is planning to acquire 19,782 hectares of oil palm plantation land in Sarawak and in East Kalimantan for RM92 million.

With the exercise, the group's land bank would increase to 59,154 hectares from its present 39,372 hectares, said chief executive officer Datuk Zainal Azwar Zainal Aminuddin.

"For the land acquisition in Sarawak, we are targeting for end-May, and end-August for (the acquisition in) East Kalimantan.

"We've an appetite for more land bank expansion and are eyeing another 20,000 hectares of plantation land, also in Sarawak and in Kalimantan, and this will bring our total land bank to 70,000 hectares by 2015," said Zainal Azwar.

Speaking to reporters after the company's annual general meeting, Zainal Azwar, who is also TH Plantations executive director, said the acquisition would be satisfied by internally-generated funds.

He said the plantation land being acquired would reach maturity between three and four years and was expected to contribute to group's earnings thereafter.

On projected fresh fruit bunches (FFB) growth, Zainal Azwar said it was projected to increase by between eight and 10 per cent this year.

Meanwhile, chairman Tan Sri Dr Yusof Basiron said palm oil prices were expected to remain firm over the next six to seven months as soyoil supply remained tight because of the South American soyabean drought.

"We are now fetching between RM3,400 and RM3,500 per tonne for this period, as predicted and going forward, it depends on how the severity of the soybean shortage will play out," he said.

"Malaysia hopes to supply approximately 19.3 million tonnes of palm oil for this year compared with 18.9 million tonnes recorded last year," he added. -- BERNAMA

Source: www.btimes.com.my