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KUALA LUMPUR: Huat Lai Resources Bhd is buying four plots of agriculture land measuring 430 acres (172ha) in Jasin, Melaka for RM43 million. In a filing with Bursa Malaysia on Wednesday, Oct 5, Huat Lai said the land would be used for oil palm plantations.
The poultry firm added that parts of the land could be used for farms in the future if the "need arises", and the acquisitions would provide an additional income stream to the group. Huat Lai plans to complete the acquisition by 2Q12.
Huat Lai said its wholly-owned subsidiary Linggi Agriculture Sdn Bhd had entered into three sale and purchase agreements with Yayasan Melaka to buy three plots measuring 330 acres in total.
It added that Linggi Potensi Sdn Bhd's 50%-owned company, Titian Potensi Sdn Bhd, had also entered into a sale and purchase agreement with Yayasan Melaka for another 100 acres of land.
Linggi Potensi is involved in poultry farming and Titian Potensi in oil palm production.
The four plots totalling 430 acres form part of a freehold land held under Geran Hakmilik 46411, Lot No 7043, Mukim Jasin, Daerah Jasin, Melaka measuring approximately 842.5ha free from all encumbrances.
Huat Lai intends to fund the acquisitions via RM38 million in cash and RM5 million in bank borrowings.
As at June 30, Huat Lai had RM30.63 million in cash and fixed deposits, while short-term and long-term borrowings stood at RM106.1 million. For 2HFY11 ended June 30, it posted a net profit of RM23.27 million on revenue of RM330.86 million.
On Monday, Huat Lai announced that it plans to acquire a 33.65% stake in TPC Plus Bhd from London Biscuits Bhd for RM8.08 million in cash. Huat Lai will need to make a general offer for the remaining shares as the acquisition crosses the 33% threshold.
The stock was untraded on Wednesday. It closed at RM1.94 on Tuesday.
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