TH Plantations plans Sarawak acquisitions

KUALA LUMPUR: TH PLANTATIONS Bhd is set to buy 6,500ha of oil palm estate and a quarry in Sarawak for more than RM200 million.

"It's a brownfield block in Bintulu, away from native customary land. The oil palms are young, between two and five years old," a source said.

"It's going for RM20,500 per hectare. It is at a slight premium because this Bintulu estate includes a quarry mine, separately priced at around RM70 million. It has income-generating rock reserves of up to 30 years," the source told Business Times.

"Currently, TH Plantations landbank is about 45,000ha. If you count the 46,000ha block of estates to be transferred from parent company Lembaga Tabung Haji and this Bintulu estate, it will come up to around 100,000ha," the source said.

Five months ago, TH Plantations told the stock exchange that it wanted to buy 45,738ha of agricul-ture landbank from its parent company Lembaga Tabung Haji for RM536 million.

The acquisition is to be satisfied via the issuance of 209.23 million new THP shares at an issue price of RM2.56 per share. If the deal goes through, TH Plantations' agriculture landbank would double from the current 44,933ha to 90,671ha.

The deal to double TH Plantations' landbank hit a snag last week when Sabah Forestry Department rejected the execution of the teak and rubber plantation development agreement with TH-Bonggaya.