KUALA LUMPUIR: KIM LOONG RESOURCES BHD (KLRB), via its subsidiary Kim Loong Corp Sdn Bhd, has entered into a sale and purchase agreement to acquire a 60% equity stake in loss-making plantation company Tetangga Akrab Pelita (Pantu) Sdn Bhd from Tetangga Akrab Sdn Bhd for RM25 million cash.
As of Oct 31, Kim Loong has made advance payments totalling RM11.43 million for the acquisition. Pelita Holdings Sdn Bhd currently holds the remaining 40% stake in Tetangga Akrab.
Despite the strong crude palm oil prices, Tetangga Akrab Pelita had been in the red for the past three financial years ended June 30, with 2007, 2008 and 2009 losses amounting to RM119,000, RM1.32 million and RM2.6 million, respectively. The company attributed the losses to its young immature plantations.
The Sarawak-based Tetangga Akrab has planned to develop some 10,471ha of land held under Native Customary Rights in Sg Tenggang and Bukit Bengunan in Sri Aman into oil palm plantations.
The estimated plantable areas are 6,283ha.
