KUALA LUMPUR (March 4): Harn Len Corp Bhd has confirmed a report in The Edge Malaysia weekly that it is seeking to dispose of its estates through an open tender.
“Harn Len is considering disposing of its estates located in Pahang together with an oil mill through an open tender to be handled by an authorised property agent namely, PA International Real Estates (JB) Sdn Bhd),” the group said in a filing with Bursa Malaysia.
“The property agent had advertised in The Star on 2 Feb and 18 Feb, 2019 and in The Edge on 11 Feb, 18 Feb and 25 Feb, 2019 to invite interested bidders for the tender."
According to The Edge report, Johor-based Harn Len is seeking to sell the 5,230-acre Senang Oil Palm Estate and 5,250-acre Lian Hup Estate located in Keratong.
The latter includes a mill with a capacity of 40 tonnes of fresh fruit bunches per hour.
Harn Len did not stipulate how much it intends to sell the estates for, the report noted.
In today’s filing, the group said the gross proceeds from the disposal are expected to be utilised to bring down short-term bank borrowings and trade payables, strengthen the company’s cash flow position, fund the expansion of its plantation business and acquire the right assets when the opportunity arises.
The excess cash will enable the group to execute a dividend policy once it is ready, it added.
Shares of Harn Len rose four sen or 8.7% to 50 sen, valuing the group at RM86.61 million.