KUALA LUMPUR (Aug 3): TDM Bhd announced today that the deal to sell two loss-making subsidiaries for US$50 million (about RM210.3 million) to an Indonesian company has fallen through, despite multiple extensions given to the buyer to effect the deal, with the last until July 31.

"After due consideration that the execution deadline had been extended several times since the acceptance by the board of the offer from PT Aragon [Agro Pratama] on Feb 28, 2020, coupled with the uncertainties posed by the global pandemic of Covid-19 that affected PT Aragon in finalising the CSPA, on behalf of the board, RHB Investment Bank wishes to announce that on Aug 3, 2020, the board has decided to withdraw the said acceptance of the offer, which expired on July 31, 2020," TDM said in a stock exchange filing.

"Notwithstanding the above, the management is committed to disposing of the said assets and will continue to identify appropriate buyer(s) and follow up with necessary announcements when there is further development," it added.

Prior to this, the deal's final date had been postponed from March 13 to April 3, April 30 and to May 29.

TDM first announced the offer for its 93.75%-owned PT Rafi Kamajaya Abadi (RKA) and 95%-owned PTA Sawit Rezki Abadi (SRA) on Feb 28.

RKA owns 37,208ha of plantation land in Kabupaten Melawi in West Kalimantan. It also has a palm oil mill with a 60-tonne-per-hour capacity, and four crude palm oil storage facilities with a capacity of 120,000 tonnes. SRA, meanwhile, owns 10,000ha of plantation land.

Both RKA and SRA have been loss-making for the past three financial years ended Dec 31 2016, 2017 and 2018.

TDM shares finished 2.08% or half a sen lower at 23.5 sen today, giving it a market capitalisation of RM404.88 million. It saw 12.18 million shares done.