FGV buys estates from Golden Land

KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV) is buying four plantation-based firms and a parcel of oil palm land in Sabah measuring 836.1ha from Golden Land Bhd for RM655 million.

In its filing to the stock exchange yesterday, Golden Land estimated it would gain RM15.23 million from the proposed disposals. This is after factoring in the real property gains tax of RM25.96 million and estimated expenses for the proposed disposal of RM20 million. As of todate, Golden Land has yet to determine the amount of the net proceeds and how exactly the money would be used.

Golden Land, which will still own about 8,497ha of plantation lands after the proposed exercise, said the disposals may trigger a criteria under Practice Note 17.

The continuous listing of Golden Land on the Main Market may then depend on the ability of the firm’s board and management to formulate a regularisation plan within a stipulated period.

FGV and Golden Land told Bursa Malaysia that FGV’s unit Pontian United Plantations Bhd had yesterday signed a conditional sale and purchase agreement of the 836.1ha and this deal is set to complete in three months.

The land is currently charged to Hong Leong Bank Bhd as part of the security for loan given to Golden Land. Its market value, as assessed by CH Williams Talhar & Wong (Sabah) Sdn Bhd, is RM71.72 million.

FGV closed 1 sen lower at RM1.91 yesterday. Golden Land, whose trading was suspended on yesterday but will resume today, also closed at RM1.91, last Friday.