KUALA LUMPUR (Dec 27): Shareholders of Pinehill Pacific Bhd have been advised to vote in favour of its plan to dispose of 8,999 acres of land in Perak to United Plantations Bhd for RM413.57 million at the group's extraordinary general meeting on Jan 18.

In an independent advice circular issued today, BDO Capital Consultants Sdn Bhd said Pinehill's plan to dispose of 8,999 acres of land in Perak to United Plantations Bhd for RM413.57 million is deemed "fair and reasonable".

BDO said it has taken into consideration of eight aspects of the deal, including the fair value assessment, rationale, proposed proceeds utilisation, salient terms of the sale and purchase agreements (SPAs), financial effects of the disposal, industry outlook and prospects, and risk factors associated with the disposal.

“Premised on our overall evaluation and assessment of the proposed disposal based on information available to us up to the last practicable date, we are of the opinion that the proposed disposal is fair and reasonable insofar as the shareholders of Pinehill are concerned,” it said.

On Sept 21, Pinehill announced that it is disposing of seven pieces of agricultural land together with palm oil mill, workers, living quarters and a site office to United Plantations.

United Plantations had entered into three conditional SPAs with Pinehill group of companies, namely Pinehill Plantations (Malaysia) Sdn Bhd, Syarikat Kaum Melayu Hilir Perak Sdn Bhd and Tahir, Rozlan and Tasariff Sdn Bhd, for the acquisition of the land.

The disposal is expected to be completed by the first quarter of 2019.

Pinehill had said the proposed disposal provides an opportunity for the group to unlock and realise the value of its investments within its subsidiaries.