KUALA LUMPUR (Sept 28): Matang Bhd's plan to acquire two parcels of leasehold agricultural land in Raub, Pahang, for RM180 million suffered a setback today, due to an injunction granted by the High Court of Malaya.

In a filing with Bursa Malaysia today, Matang said it has received a letter from Raub Mining & Development Co Sdn Bhd (RMDC) informing it that the disposal of the assets will be put on hold for the moment due to the injunction.

"RMDC had instructed its solicitors and counsel to prosecute an appeal against the decision of the High Court and it shall keep the company informed of the progress of the matter," said Matang.

In July, Matang had issued a letter of intent (LoI) to RMDC and Raub Oil Mill Sdn Bhd, stating its intention to buy the two parcels of land totalling 1,707.69ha from them. The land comes together with an oil palm plantation, buildings, plant, machinery, equipment and a palm oil mill, as well as vehicles and stocks of the aforesaid plantation and mill.

However, the LoI was not intended to be legally binding for the parties until and unless a formal agreement was entered into, Matang said.

Matang shares closed unchanged at 10.5 sen today, giving it a market value of RM190.05 million.