KUALA LUMPUR (Sept 8): Boustead Plantations Bhd is selling six parcels of freehold land collectively measuring 104.4ha in Kulaijaya, Johor, to YTL Cement Bhd for RM60.67 million cash.

In a filing with Bursa Malaysia today, the plantation group expects the land sale to realise an estimated gain of RM52.37 million, which translates into about 3.3 sen per share for financial year ending Dec 31, 2015.

The first deal, Boustead Plantations said, was between CIMB Islamic Trustee Bhd, being the trustee of the group, and YTL Cement. It is for the disposal of three parcels of freehold land with a land size of 52.69ha for RM30.06 million cash.

The second deal was between its wholly-owned subsidiary, Boustead Sungai Manar Sdn Bhd, and YTL Cement, for the disposal of lands used primarily for quarry activities for RM30.61 million.

Boustead Plantations said the disposal is part of its efforts to continuously unlock the value of its land bank which is non-core to the group.

“The sale consideration was reached on a willing-seller-willing-buyer basis, factoring in the fair market value of the land based on an independent professional valuation,” it added.

Barring any unforeseen circumstances, the group expects the deal to be completed by the fourth quarter of 2015.

Shares in Boustead Plantations closed one sen or 0.78% higher at RM1.29, for a market capitalisation of RM2.06 billion.

(Note: The Edge Research’s fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)