Sarawak Oil Palms in RM242m acquisitions (5126)

KUALA LUMPUR: Sarawak Oil Palms Bhd (SOP)
has proposed to acquire the remaining stakes in two plantation
companies for a total of RM242.40mil to expand its estates in Sarawak.
SOP said on Wednesday it had entered into a conditional share sale agreement with Shin Yang Holding Sdn Bhd to acquire the remaining 40% stake in SOP Plantations (Beluru) Sdn Bhd from RM122.40mil.
It also inked an agreement with Shin Yang to acquire a 35% stake in SOP Plantations (Kemena) for RM120.10mil.
"The
proposed acquisitions are expected to provide SOP with the opportunity
to expand its equity participation and ownership in the palm oil
related activities in Sarawak by increasing its shareholdings in the
acquiree companies," it said.
SOP said the proposed acquisitions
were expected to improve the age profile of the oil palms held by the
group as the plantation estates held by the acquiree companies
consisted of a mixture of immature and young mature oil palms with the
age of one to five years.
"As such, this is expected to provide steady revenue and earnings to the group in the medium to long run," it said.