SIBU: Shareholders of Ta Ann Holdings Berhad (TAHB) have approved the acquisition of 30.39 per cent stake in Sarawak Plantation Berhad (SPB) for RM169.9 million or RM2 a share.
The approval was made at TAHB’s extraordinary general meeting held here yesterday. The acquisition will be financed by bank borrowings as well as internal funds.
SPB is principally engaged in the cultivation and processing of oil palm into Crude Palm Oil (CPO) and Palm kennel (PK).
The group owns 20 estates, mostly located in northen region (Niah) and central region (Mukah) with a total landbank of 48,086 ha, out of which, 34,837 ha have been planted.
Its relatively young oil palm age profile of about 41 per cent in young mature and immature and 50 per cent in prime mature offers a promising growth momentum in terms of higher yields in the coming years.
“Considering the scarcity of sizeable and suitable land for oil palm cultivation in Sarawak, we view the acquisition as a strategic investment for our Group” said the chief executive officer of Ta Ann Group, Dato Wong Kuo Hea.
SPB also owns and operates two palm oil mills located in Niah and Mukah with a total capacity of 150 metric tonnes per hour.
“The acquisition, which received overwhelming support from our shareholders, is consistent with our strategic plan to further develop and expand our oil palm plantation business and to gain larger market share in Sarawak.
“Upon completion of the acquisition, SPB will be an associate company of TAHB,” Wong added.
Also present at the meeting were TAHB’s executive chairman Datuk Amar Abdul Hamed Sepawi, Sa’id Dollah (executive director), Wong Siik Onn (executive director), Datuk Abdul Karim Tun Abang Openg (senior independent non-executive director), Datuk Awang Bemee Awang Ali Basah (independent non-executive director), Chia Chu Fatt (independent non-executive director) and Ting Lina @ Ding Lina (non-executive director).