PETALING JAYA: Ekovest Bhd is acquiring a 23.42% stake in PLS Plantations Bhd from Serumpun Abadi Sdn Bhd (SASB), a company controlled by Ekovest executive chairman Tan Sri Lim Kang Hoo, for RM76.5 million cash or RM1 per share to venture into oil palm plantation business.
In a filing with Bursa Malaysia, Ekovest said the proposed acquisition is to transform the group into a larger listed conglomerate with a larger portfolio of diversified businesses, in line with the strategy to reduce reliance on its existing businesses in construction, property development and toll operations.
PLS Group, via its 70%-owned subsidiary Aramijaya Sdn Bhd, is involved in the management, operation and maintenance of Ladang Hutan Ulu Sedili, a forest plantation project measuring 35,223ha in Johor.
As at March 31, 2018, PLS Group has a total of 12,346ha of oil palm cultivation land with total planted area of 10,921ha.
The proposed shares acquisition also comes with a profit guarantee in respect of the actual aggregate audited profit after tax and minority interests of Dulai Fruits Enterprise Sdn Bhd for the financial years ending 2020, 2021 and 2022 of not less than RM10 million.
PLS holds 70% equity interest in Dulai through Brighthill Synergy Sdn Bhd.
The proposed acquisition is expected to be completed by the first quarter of 2019 and will be financed with internal funds.
On Bursa Malaysia today, Ekovest rose 0.85% to close at 59 sen, while PLS was down 2.1% to 95 sen.
Source: The Sun Daily