KUALA LUMPUR (Dec 18): PLS Plantation Bhd has bought 14.81 acres of land in Raub, Pahang for RM11.50 million to expand its durian cultivation business.

“With the prospects of the durian industry, the board is optimistic that the proposed acquisition will enable the group to build on the existing durian business operations, to ensure a steady supply of fresh and processed durian fruits and to increase the production and processing capacity,” the group said. 

This is expected to enhance the future earnings streams and profitability of PLS, the group said in a bourse filing.

PLS Plantation said its wholly-owned subsidiary Ikhlasi Bina Sdn Bhd is acquiring the Raub land from Kit Ming Sawmill Sdn Bhd.

The group intends to fund the acquisition via a combination of internally-generated funds and bank borrowings, and expects this acquisition to be completed by the first quarter of 2021.

PLS Plantation shares closed up half a sen or 0.55% at 91.5 sen today, bringing the group a market capitalisation of RM332.33 million.

Year-to-date, the counter has gained 69% from 54 sen on Jan 2.