BLD Plantation aborts plan to buy RM155.22 mil plantation lands

KUALA LUMPUR (Oct 5): BLD Plantation Bhd has aborted its plan to acquire Pekan Semangat Sdn Bhd from multiple vendors for RM155.22 million cash, which will give it an additional 5,442 hectares (ha) of plantation lands.

In a filing with Bursa Malaysia today, the plantation company said the both itself and the vendors have agreed to enter into a rescission agreement pursuant to Clause 4.6 of the share sale agreement.

It added that both parties have mutually agreed to rescind the agreement in relation to the proposed acquisition.

BLD Plantation had on March 15 announced its plan to acquire entire equity stake in Pekan Semangat from the latter's directors and shareholders, Loi Heng Sewn, Lau Yong Lee, Albert Hong Hin Kay and Dr Ngoi Sing Shang.

According to the earlier filing, it said Pekan Semangat's 70%-owned subsidiary Agrogreen Ventures Sdn Bhd has two parcels of provisional lease of state lands, totalling 5,442ha, out of which not less than 5,000ha have been developed into an oil palm plantation.

"The proposed acquisition is consistent with BLD Plantation's plans to continue to expand its oil palm cultivation business by acquiring new land bank in Malaysia, particularly in Sarawak," it said, adding this represents a strategic investment by the group.

"The board believes that with the increase in the size of the landbank pursuant to the proposed acquisition, it will put the group on a strong footing to become one of the major players in the oil palm cultivation business in Malaysia," it added.

The stock, which was not traded today, last closed at RM8.50, for a market value of RM794.75 million. — theedgemarkets.com

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