KUALA LUMPUR, Aug 26 -- Taiko Plantations Pte Ltd has entered into two conditional shares sale and purchase agreements with subsidiaries of TSH Resources Bhd to acquire 90 per cent equity interest each in PT Farinda Bersaudara and PT Teguh Swakarsa Sejahtera with total cash consideration of US$110.1 million.
Taiko Plantations is a Singapore-incorporated wholly-owned subsidiary of Kuala Lumpur Kepong Bhd (KLK).
In a filing with Bursa Malaysia today, KLK said following completion of the proposed acquisition, which was expected in the first quarter of 2021, PT Farinda and PT Teguh shall be subsidiaries of KLK.
“The acquisition represents an opportunity for KLK to acquire two companies with a brownfield oil palm plantations. Further, it is in the ordinary course of business of KLK group and is also in line with KLK’s business direction to expand its plantation land bank.
“The planted/plantable area of PT Farinda and PT Teguh land totalling +17,610 hectares (ha), which together with the planted area of KLK’s PT Putra Bongan Jaya estates at +10,000 ha, would make up a sizeable +27,600 ha, all located at the same place in Kutai Barat and allow for greater economies of scale and operational synergies,” it said.
-- BERNAMA
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