KUALA LUMPUR (Sept 21): Shares in Pinehill Pacific Bhd hit limit up after the stock rose as much as 30 sen or 214.29% to 44 sen after resuming trading from 2.30pm today. Trading in its shares was halted this morning pending the announcement of the group's disposal of 8,999.13 acres of land in Daerah Hilir Perak to United Plantations Bhd for RM413.57 million cash.

At 3:50pm today, the counter was the fourth top gainer on Bursa Malaysia. A total of 1.01 million shares changed hands.

The latest share price values the group at RM65.91 million, compared with a market capitalisation of RM20.97 million before the announcement.

Earlier today, Pinehill Pacific announced that it is disposing of seven pieces of agricultural lands together with palm oil mill, workers, living quarters and a site office to United Plantations.

United Plantations had entered into three conditional sale and purchase agreements with Pinehill Pacific Bhd group of companies, namely Pinehill Plantations (Malaysia) Sdn Bhd, Syarikat Kaum Melayu Hilir Perak Sdn Bhd and Tahir, Rozlan and Tasariff Sdn Bhd, for the acquisition of the lands.

The disposal is expected to be completed by the first quarter of 2019.

Pinehill Pacific said the proposed disposal provides an opportunity for the group to unlock and realise the value of its investments within its subsidiaries.

"Given the size, location, the remaining tenure and market value of the plantation assets, it is an opportunity for [us] to dispose of the plantation assets to United Plantations," Pinehill Pacific said in a filing with Bursa, adding that the proposed disposal comes with an attractive offer that is in line with the group's objective to enhance shareholder value.

Proceeds raised from the proposed disposal will be used to repay borrowings, fund the group's existing oil palm plantation business in Indonesia and for working capital.