KUALA LUMPUR (Dec 17): Sarawak Oil Palms Bhd has withdrawn its bid to acquire a 60% stake in DD Pelita Sebungan Plantation Sdn Bhd and Mutiara Pelita Genaan Plantation Sdn Bhd from Double Dynasty Sdn Bhd (DDSB) and Mutiara Hartabumi Sdn Bhd (MHSB) for RM134.9 million, after the vendors failed to obtain consent from the authority for the sale and transfer of their sale shares.
DD Pelita and Mutiara Pelita have collectively planted 9,661ha of oil palm estates in Sarawak with an estimated average age profile of 5.5 years.
In a filing with Bursa Malaysia today, Sarawak Oil Palms said it was informed by the vendors (DDSB and MHSB) that the latter were unable to obtain the consent from the Ministry of Land Development for the sale and transfer of their sale shares, which was one of the conditions precedent in the share sale agreement (SSA).
"(As such,) the vendors are giving notice to rescind the SSA pursuant to clause 4.5.1 of the SSA. As the sale and purchase agreement (SPA) is conditional upon the completion of the SSA, the SPA would also be rescinded," it added.
Sarawak Oil Palms noted that it is currently contemplating its next course of action, which would include the recovery of the deposit and the cessation of its representative as a director in DD Pelita and Mutiara Pelita.
Under the conditional SSA, there was also an arrangement to contract DDSB and MHSB for their services to procure the natives with up to 8,000ha of Native Customary Rights (NCR) land to come within the Sarawak government’s scheme for the development of this land into oil palm plantations for procurement of RM3,500 per ha.
This procurement will be satisfied by the issuance of 473 Sarawak Oil Palms shares at an issue price of RM7.40 per additional consideration share.
Once the 8,000ha of NCR land have been procured by DDSB and MHSB, a total of 3.78 million additional shares will be issued by Sarawak Oil Palms to the vendors as settlement for the rights procurement consideration.
There was also a conditional sale and purchase agreement with landowners DD Palm Oil Mills Sdn Bhd, Ting Chek Ing, Lee Ka Ming and Lee King Ho for the proposed acquisition of 34.9ha of land in Bintulu, Sarawak, for RM4.3 million cash.