KUALA LUMPUR, December 22, 2016 – Boustead Plantations Berhad (BPB) is set to dispose of five parcels of land located in Seberang Perai Utara, Pulau Pinang, with a combined land area of 678 hectares. BPB has entered into a sale and purchase agreement with Setia Recreation Sdn Bhd for the proposed sale for a total cash consideration of RM620 million.
The sale consideration was reached on a willing-seller-willing-buyer basis, factoring in the fair market value of the land based on an independent professional valuation. The sale consideration represents a premium of RM7.12 million or 1.16% over the fair market value of the lands of RM613 million accorded by the valuer, Messrs. Raine & Horne.
YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Vice Chairman, BPB, said, “It is not often that we receive attractive offers that resonate so well with our business strategy. The disposal of these parcels of land in Pulau Pinang will indeed unlock value for the Group, as the capital appreciation of the land, particularly for development potential, is high. Weighing the prospects of maintaining the asset, even with crude palm oil trending at favourable levels, the sale of the land offers greater value to the Group.”
“The proceeds of the proposed sale will also enable the Group to strengthen its liquidity position and move forward with our expansion strategy to acquire viable and economical plantation land bank when the opportunity arises,” concluded YBhg Tan Sri Dato’ Seri Lodin.
The proposed sale is subject to conditions precedents, amongst them, obtaining the necessary approvals from the Estate Land Board, the Economic Planning Unit, and the shareholders of BPB.
Forward looking statements
This release may contain certain forward-looking statements with respect to the financial conditions, results of operations and business of the Group and certain plans and objectives of Boustead Plantations Berhad with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.
Issued on behalf of: Boustead Plantations Berhad
By: acorn communications sdn bhd
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