Ta Ann buys 30.39% of Sarawak Plantation for RM169.94 million

PETALING JAYA: Timber company Bhd is acquiring a 30.39% stake in Plantation Bhd for (SPB) RM169.94 million or RM2 per share in a related party transaction.

SPB’s edged up 4 sen or 2.3% to close at RM1.80, while fell 2 sen or 0.6% to RM3.51.

The purchase sum represents a premium of about 11.48% to its five-day volume weighted average price of RM1.7941.

Ta Ann said in a filing with the stock exchange, it had entered into a conditional share sale agreement with Cermat Ceria Sdn Bhd (CCSB) for the acquisition, which will be fully satisfied in cash and funded via internally generated funds and/or bank borrowings.



The proposed acquisition is consistent with its plan to further expand its plantation business and gain larger market access in Sarawak.

SPB Group has a total planted hectarage of 34,837 ha, which is made up of 26,825 ha of mature area and 8,012 ha of immature area respectively. Its oil palm estates are predominantly located at Niah and Mukah, Sarawak.

Taking into account 40.39% participation in SPB’s plantation estates, Ta Ann’s planted area is expected to be enlarged by about 23%.

Ta Ann executive chairman and major shareholder Datuk Amar, who has 7.30% direct and 27.82% indirect interest in Ta Ann via held by Mountex
Sdn Bhd, is also the controlling shareholder of CCSB.

In addition, Datuk Wahab Haji Dolah, Ta Ann managing director and CEO Datuk Wong Kuo Hea and Upaya Rajang Sdn Bhd are deemed persons connected to Datuk Amar by virtue of their major shareholdings in Mountex.

Source: The Sun Daily







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