KUCHING: Lembaga Amanah Kebajikan Masjid Negeri Sarawak (LAKMNS) has acquired a further 21 per cent shares in Rimbunan Hijau (RH) Group’s Lubuk Tiara Sdn Bhd (Lubuk Tiara), increasing its total stake in the company to 51 per cent.
The acquisition would see the RH Group maintain 49 per cent shares in Lubuk Tiara, its palm oil company operating at Sungai Bok, Tinjar in Baram (Miri).
After the acquisition of the 21 per cent shares in Lubuk Tiara from RH Group, LAKMNS is now the major shareholder.
However, total value of the corporate exercise was not disclosed.
LAKMNS and RH Group had been discussing on the restructuring of the three major projects under its perview, namely PJP Pelita Biawak Sdn Bhd in Biawak (Kuching) , Kuraya Enterprise Sdn Bhd (Balingian and Mukah) and Lubuk Tiara since 2008.
Speaking at the memorandum of understanding (MoU) signing ceremony for the sales and purchase of shares and asset between LAKMNS and RH Group at Pullman hotel here yesterday, LAKMNS honorary secretary Tan Sri Datuk Amar Bujang Nor stated that the board directors of Lubuk Tiara would be restructured to emulate among other things the equity interest of LAKMNS.
“There will be some input from LAKMNS in the management of the company although in general it was agreed that RH Group would continue to manage the estate simply for its vast experience in the management of oil palm plantations.
LAKMNS and RH have worked together through joint ventures in the palm oil sector throughout the years,” he added.
On Jan 15, 2009, the LAKMNS board agreed to increase its equity stake in Lubuk Tiara from 30 per cent to 51 per cent and transfer all its ordinary shares in PJB Pelita Biawak Sdn Bhd and Kuraya Enterprise Sdn Bhd to the RH group.
Bujang Nor also noted that RH Group subsidiary Rimbunan Sawit Bhd would be involved in the restructuring exercise as it is a listed company.
He explained that the parties had to comply with all the necessary procedures and transparency of the transaction and that the exercise would be done in accordance to the Companies Act and Bursa Malaysia’s requirements and procedures.
“This explains why the restructuring exercise took sometime to complete. The signing of the agreement today is indeed an important milestone in forging greater ties between the two parties.
“I am confident that with the commitment and close corporation and hard work between the parties concerned, we will be able to achieve our target in a well managed company in the oil palm industry. I hope this partnership reaps a lot of benefit for both parties,” he added.
Lubuk Tiara was incorporated in 1994 with the main line of business in the development of oil palm plantations. Situated in Baram with a land area of 6,217 hectares, it has a total plantable area encompassing approximately 4,108 hectares.
In another note, LAKMNS has about 20,000 hectares equity in the palm oil industry.
The MoU signing ceremony between Bujang Nor and RH Group executive director Datuk Tiong Thai King was witnessed by Chief Minister Pehin Sri Abdul Taib Mahmud.
Also present at the ceremony were LAKMNS exco member Datu Putit Matzen, LAKMNS general manager Mohd Sabry Othman, RH Group board members Tiong Chiong Ong and Tiong Kiong King, Assistant Minister in the Chief Minister’s Department (Islamic Affairs) Datuk Daud Abdul Rahman and Kuching North City Commission (DBKU) commissioner Abang Atei Abang Medaan.