KUALA LUMPUR (Jan 3): TDM Bhd, controlled by the Terengganu state via Terengganu Inc Sdn Bhd with a 61.15% stake, has accepted lands totalling 4,515ha in Kemaman and Dungun offered by the Terengganu state government through a grant, which is in line with TDM's domestic plantation expansion plan.
TDM’s current land bank in Terengganu stands at 31,848ha and the acceptance of the lands, together with the proposed acquisition of controlling stake in Ladang Rakyat Trengganu Sdn Bhd which was announced on Feb 27, 2017, will increase TDM’s total land bank in Terengganu to 47,830ha.
In July last year, the company had applied to the Terengganu government for lands in Hutan Simpan Sungai Nipah, Kemaman and Hutan Simpan Rasau, Dungun.
"The state had approved TDM's application for the lands as per the terms and conditions set out in its letters dated Dec 26 and 28, 2017 respectively," TDM said in a filing with Bursa Malaysia today.
"The state had agreed to convert the lands from forest reserve to government land and that the state will replace the affected areas with other lands as forest reserve," it added.
TDM will pay RM250 per ha per year to a trust fund for wild life conservation and conflict management. It is also to prepare a report of environment regulations to the Department of Environment and the state.
"The effects of the grant is still at premature stage as of to date and TDM is currently in the process of examining and assessing the impact of the grant to its net assets, earnings and gearing of TDM for the financial year ending Dec 31, 2018.
"Barring any unforeseen circumstances, the grant is expected to contribute positively to the future earnings of TDM," it said.
TDM shares closed unchanged at 46 sen today, bringing a market capitalisation of RM770.91 million.