KL Kepong expands into Papua New Guinea

KUALA LUMPUR: Ipoh-based Kuala Lumpur Kepong Bhd (KLK) is venturing into Papua New Guinea to plant oil palms.

In its filing to Bursa Malaysia yesterday, the group said it is planning to buy a company that has leasehold rights over 44,342 hectares of agriculture land there.

KLK is expected to pay US$8.7 million (or RM27 million) to Hii Eii Sing, a Malaysian national, to secure 51 per cent control of Collingwood Plantations Pte Ltd.

KLK has so far planted up around 205,000ha in Malaysia and Indonesia. The plantation business make up some 75 per cent of the group's profits.

When contacted yesterday, KLK plantations director Roy Lim Kiam Chye said: "It's a greenfield venture. If and when this deal completes in the first quarter of 2013, it'll bump up our plantation landbank by 20 per cent to around 290,000ha."