Update Boustead buys Sabah oil palm land for RM185m

Update Boustead buys Sabah oil palm land for RM185m
Business & Markets 2013
Written by Cynthia Blemin of theedgemalaysia.com
Friday, 27 September 2013 14:27

KUALA LUMPUR (Sept 27): BOUSTEAD HOLDINGS BHD [] is buying 2,410 ha of oil palm PLANTATION [] tracts in Lahad Datu, Sabah for RM184.6 million.

According to Boustead's filing to Bursa Malayisa today, Boustead Plantations Bhd’s wholly-owned subsidiary Boustead Rimba Nilai Sdn Bhd has entered into a sale and purchase agreement (SPA) with Uniglobal Sdn Bhd for the proposed acquisition.

Boustead owns 100% of Boustead Plantations.

Boustead said the proposed acquisition involves two pieces of oil palm plantation sites in Lahad Datu, each within the Tenegang-Koyah, and Ulu Segama areas.

“The proposed acquisition is in line with Boustead Plantations and its subsidiaries’ intention to expand their oil palm activities in Malaysia,” Boustead said.

The purchase price of RM184.6 million was arrived at on a willing buyer-willing seller basis, it said.

Boustead said it plans to finance the purchase with its internally-generated funds and bank loans.

According to Boustead, the proposed acquisition is "not expected to materially change" the risk profile of the group. This is because the acquisition aims to facilitate the expansion of Boustead's oil palm activities.