Friday 29 Mar 2024
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KUALA LUMPUR (Feb 28): TDM Bhd said today it has received an offer from PT Aragon Agro Pratama to acquire two of its subsidiaries, PT Rafi Kamajaya Abadi (RKA) and PTA Sawit Rezki Abadi (SRA), for US$50 million (around RM210.3 million).

TDM owns a 93.75% stake in RKA, which owns 37,208 ha of plantation land in Kabupaten Melawi. RKA also has a palm oil mill with capacity of 60 tonnes per hour, as well as four crude palm oil (CPO) storage with capacity of 12,000 tonnes. “Both the mill and the storage will be ready to be commissioned in 2020,” it said.

As for SRA, TDM has a 95% stake in the unit that owns 10,000 ha of plantation land.

“The board believes the proposed disposal provides an opportunity for the company to unlock and realise the value of its investments in RKA and SRA.

“In addition, both RKA and SRA have been loss making for the past three financial years ended 31 December 2016, 2017 and 2018,” it added.

TDM shares slid 1 sen or 4.26% to 22.5 sen, giving it a market capitalisation of RM378.59 million.

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