TDM rises 5.26% on securing deal to supply CPO

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KUALA LUMPUR (July 9): TDM Bhd, in which the Terengganu state government has a controlling 61.49% stake, rose 5.26% this morning after it secured a deal to supply 107,500 tonnes of crude palm oil (CPO) over a period of 43 months that comes with an upfront RM189 million payment.

At 9.07am, TDM rose 1 sen to 20 sen for a market capitalisation of RM336.53 million.

The medium-term agreement for the supply of 2,500 tonnes of CPO and/or Roundtable on Sustainable Palm Oil (RSPO)-certified CPO per month was signed with Ikhasas CPO Sdn Bhd today.

Of the total upfront payment, TDM intends to use RM52.5 million to pare down debt borrowings, RM125 million for operating expenses and general working capital for its Malaysian and Indonesian plantations, and RM10 million for capital expenditure, with the remaining RM1.5 million to defray expenses relating to the agreement.