Friday 29 Mar 2024
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KUALA LUMPUR (Oct 15): NPC Resources Bhd is disposing of four parcels of agricultural land in Kinabatangan, Sabah to Syarikat Kretam Plantations Sdn Bhd (SKPSB) for a total of RM52.72 million.

The four parcels of land — which have a total net book value of approximately RM45.707 million as of Dec 31, 2020 — are fully cultivated and come with infrastructure, buildings, fixtures, fittings, and assets.

NPC’s wholly-owned subsidiary Seraya Plantation Sdn Bhd signed a conditional sale and purchase agreement (SPA) with SKPSB on Friday for the disposal of three parcels of land measuring 1,184 acres for a combined RM29.6 million.

Meanwhile, NPC's 70% indirectly owned subsidiary Bonus Indah Sdn Bhd also entered into a conditional SPA to sell a parcel of land measuring approximately 924.9 acres for RM23.12 million to SKPSB. 

The sale prices were arrived at on a willing buyer, willing seller basis, said NPC in a bourse filing Friday.

After the proposed disposals, the net assets per share of NPC will increase from RM4.12 to RM4.18, the gearing ratio will drop from 0.90 to 0.79, while the estimated gain on disposal is worth approximately RM7.015 million.

NPC said the lands only contributed 3.6% of total crops for the group — an insignificant impact on its performance.

“Post completion of the proposed disposals, NPC still owns approximately 10,776 hectares of plantation lands in Sabah, approximately 45,064 hectares in Indonesia, and two palm oil mills,” it said.

It added the exercise will enable the group to accelerate its planting program to develop its remaining unplanted plantation lands in Indonesia and replanting program in Sabah.

“Upon maturity, the board expects the plantation lands to contribute significantly towards the group’s financial performance. In view of the above, the proposed disposals will be able to improve the cash flow position of the group,” added NPC.

Barring any unforeseen circumstances, the proposed disposals are expected to be completed by the end of the fourth quarter of 2021.

NPC's subsidiaries are involved in the provision of management services, operation of oil palm plantations and palm oil mills, trading of fresh fruit bunches (FFB), provision of transportation services, property letting, and operation of hotels.

Shares of NPC settled unchanged at RM1.86, giving the group a market capitalisation of RM223.2 million.

Edited ByLam Jian Wyn
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