Sindora, Sime to exchange estates

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KUALA LUMPUR: Sindora Bhd has proposed an exchange of oil palm estates with Sime Darby Bhd in Johor to boost its crude palm oil (CPO) production. Sindora said it would exchange its estate in Batu Pahat measuring about 2,371.7 acres (about 960 hectares) with Sime Darby’s 2,225.8-acre holdings in Kluang. Based on valuations, Sime Darby’s land is worth RM71.7 million while Sindora’s land is valued at RM77.7 million.In addition to the land exchange, Sindora would also receive RM6 million from Sime Darby.On the rationale of the exercise, Sindora said in a statement that its oil palm estate was not sizeable enough to enable a palm oil mill to be operated to enhance the extraction of CPO.“The Sime Darby land is located within the vicinity of two oil palm estates, namely Ladang Tereh and Ladang Selai which are owned by Kulim (Malaysia) Bhd, the holding company of Sindora. “The strategic location of Sime Darby’s land would enable fresh fruit bunches produced to be transported to the palm oil mill located at the adjoining Ladang Tereh plantation on a timely basis and this would enhance the extraction of CPO,” it said.In addition, Sindora said it would be able to unlock the value of its land and realise a one-time gain of about RM38.17 million or 40 sen per share upon completion of the proposed exchange.