TDM COMPLETES PURCHASE OF TH PLANTATIONS' STAKE IN THP-YT

KUALA TERENGGANU, Aug 3 -- Terengganu state-owned company TDM Bhd has completed the purchase of a 70 per cent stake in THP-YT Plantation Sdn Bhd from TH Plantations Bhd on July 31 following the fulfilment of all conditions precedent stipulated in the share purchase agreement.

Chairman Raja Datuk Idris Raja Kamarudin said with THP-YT Plantation officially becoming a TDM subsidiary on Aug 1, TDM had taken over the management and governance of the former's 2,594.5-hectare (ha) Bukit Bidong Estate in Setiu, Terengganu.

“Under our business development plan, TDM is always on the lookout for assets to be developed and which have the potential to give accretive earnings in the fields of healthcare and plantations.

“This acquisition is part of the group’s strategy to increase its average tree age profile and reduce the volatility in its earnings.

“TDM is strategically positioned to weather the challenges in a very demanding market,” he said in a statement.

TDM is paying RM7 million for the shares in THP-YT and has also agreed to the proposed settlement of the RM78.68 million inter-company advances by THP-YT to TH Plantations’ unit THP Suria Mekar Sdn Bhd.

Under the settlement agreement (SA), THP-YT, TDM and THP-YT’s other shareholder, the Terengganu Foundation (holding 30 per cent of THP-YT) will settle part of the advances amounting to RM62 million while the balance will be assigned to THP Suria Mekar for a consideration of RM1. 

In a filing with Bursa Malaysia today, TDM said the SA would be completed at a later date and an announcement would be made accordingly.

Of the 2,594.5 ha owned by THP-YT, 2,307 ha have been planted with oil palm.

Hence the acquisition would increase TDM's total cultivated area in Terengganu from 31,346 ha to 33,653 ha, said Raja Idris. 

"The oil palm plantation, with an age profile of two to nine years, will enhance the tree age profile of TDM's overall plantated area favourably. This is also part of the plan to increase the plantation area in Terengganu. 

"The THP-YT plantation is located near the Sungai Tong refinery. Therefore, this acquisition is expected to optimise the capacity and efficiency of the processing of fresh fruit bunches (FFB) and lower the processing cost at the refinery.  

"TDM is confident that the strategic value derived from this acquisition will translate into operational efficiency which will yield long-term profits,” he said.

TDM’s wholly owned subsidiary, TDM Plantation Sdn Bhd, obtained the Roundtable on Sustainable Palm Oil (RSPO) and Malaysian Sustainable Palm Oil (MSPO) certifications in 2013 and was the maiden plantation company in Terengganu to obtain the RSPO accreditation.

Established in 1965, TDM is listed on the Main Board of Bursa Malaysia with core businesses in plantation and healthcare. 

Through its plantation division, it manages 16 oil palm estates and three palm oil mills in Terengganu and West Kalimantan, Indonesia. 

Meanwhile, its healthcare division under Kumpulan Medic Iman Sdn Bhd manages four specialist hospitals which offer affordable healthcare services. 

The four hospitals are Kelana Jaya Medical Centre in Selangor; Kuantan Medical Centre in Pahang; Kuala Terengganu Specialist Hospital and TDMC Hospital in Kuala Lumpur. 

-- BERNAMA