Friday 29 Mar 2024
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KUALA LUMPUR (March 16): Plantation player Golden Land Bhd has proposed to acquire a third piece of land — measuring 1,625ha — in Sandaran district in Indonesia's East Kalimantan province.

The acquisition will be carried out through PT Setara Kilau Mas Adicita (SKMA), in which Golden Land's wholly-owned Shinny Yield Holdings Ltd had bought a 95% stake in 2014 for 24.43 billion rupiah (RM6.84 million).

In a filing with Bursa Malaysia, Golden Land said SKMA entered into a service provision agreement with PT ADJ Konsultan Abadi today. Under the agreement, ADJ will assist in obtaining the required documents, including the land use rights.

ADJ is also expected to provide assistance in resolving issues, claims, disputes, and clearing of the land, all within 36 months from the signing date.

The maximum service fee payable to ADJ is 16.99 billion rupiah (RM4.76 million).

ADJ is a company collectively controlled by Jeffrey Lachmandas Mahtani and Wisma Sinulinggair, who are also Indonesian shareholders of SKMA.

SKMA was granted location permit for a 2,835ha land in Sandaran in November 2014, and another measuring 1,170ha in February 2016.

According to Golden Land's bourse filing on its latest quarterly results, the group will continue to expand its oil palm planted area in East and South Kalimantan to reach its target of 13,000ha by 2020.

As at Dec 31, 2017, it has 3,163ha of planted land in Indonesia, and 218ha in Malaysia.

The proposed acquisition does not require shareholders' approvals, but will be subject to approvals of relevant Indonesian authorities.

Shares in Golden Land closed unchanged today at 54 sen, with a market capitalisation of RM120.37 million.

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