This article first appeared in The Edge Financial Daily on March 5, 2019

KUALA LUMPUR: 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 in Pahang together with an oil mill through an open tender to be handled by authorised property agent PA International Real Estates (JB) Sdn Bhd,” the group said in a filing with Bursa Malaysia yesterday.

“Pursuant thereto, the property agent advertised in The Star on Feb 2 and Feb 18, 2019 and in The Edge on Feb 11, Feb 18 and Feb 25, 2019 to invite interested bidders for the tender.”

According to The Edge Malaysia weekly, Johor-based Harn Len is seeking to sell the 5,230-acre (2,116.51ha) Senang Oil Palm Estate and the 5,250-acre Lian Hup Estate in Keratong. The latter includes a palm oil mill.

In yesterday’s filing, the group said proceeds from the sale are expected to be used to lower short-term bank borrowings and trade payables, strengthen the company’s cash flow position, fund the expansion of its plantation business and to acquire the right assets when the opportunity arises.

The excess cash will enable the group to execute a dividend policy when it is ready, it added. Harn Len shares rose four sen or 8.7% to 50 sen yesterday, valuing the group at RM86.61 million.