PETALING JAYA (April 12): Boustead Plantations Bhd, which is buying oil palm plantation land in Labuk and Sugut in Sabah, will increase the land's fresh fruit bunch (FFB) yield to 17 tonnes a hectare (ha) over the next four years from 11 tonnes a ha currently. Boustead Plantations has allocated RM250 million as capital expenditure (capex) to improve the land.
Boustead Plantations vice chairman Tan Sri Lodin Wok Kamaruddin said the land is undernourished.
"There is potential in this estate. With our allocated capex for the improvement plans, we can definitely increase the yield to 17 tonnes per ha within four years.
"Once we have the high-yield plants replanted, the yield can be further boosted to 23 tonnes per ha," he told reporters after Boustead Plantations' AGM and EGM here today.
According to Boustead Plantations' circular to shareholders, its wholly-owned subsidiary Boustead Rimba Nilai Sdn Bhd is buying 11,579.31 ha of oil palm plantation land in Labuk and Sugut from Pertama Land & Development Sdn Bhd for RM750 million cash.
Boustead Plantations said in a statement to Bursa Malaysia today its shareholders had at the EGM approved the proposed acquisition.
At 3:14pm, Boustead Plantations shares were traded at RM1.73 with 63,100 units transacted.