KLK pays US$8.67m for 51% of firm with 44,342ha PNG land

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KUALA LUMPUR (Oct 4): Kuala Lumpur Kepong Bhd (KLK) is paying US$8.67 million (RM26.86 million) for 51% of a company that has rights to sizeable land in Papua New Guinea (PNG) intended for oil palm planting.

In a statement to Bursa Malaysia, KLK said it is buying 51% of Singapore-incorporated Collingwood Plantations Pte Ltd for US$8.67 million, whose principal businesses are forestry, tug and barging services and investment holding.

Collingwood's wholly-owned Ang Agro Forest Management Ltd has registered rights over three plots of land measuring 44,342 hectares (ha) in total in the town of Tufi in the Oro Province.

The first plot measuring 5,992ha is a 99-year state lease land expiring on April 2110, which is contiguous with a 49-year lease plot measuring 21,520ha expiring August 2061. The third plot — measuring 16,830ha, and also on a 49-year lease — is 10 kilometres away.

KLK's shareholder Batu Kawan Bhd will have 18% of Collingwood after the 51% stake sale to KLK. The vendor Hii Eii Sing, a Malaysian national, retains 31% of the company.