TSH Resources to complete Icon Field’s acquisition by mid-2015

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KUALA LUMPUR: TSH Resources Bhd expects the acquisition of Icon Field Ventures Sdn Bhd, which owns a 90% stake in Indonesian company PT Prima Usaha Sukses (PT PUS), to be completed by the middle of next year.

PT PUS owns 9,000ha of plantation land in Kalimantan, located near TSH’s existing estate, PT Mitra Jaya Cemerlang.

“I think it will take a few more months to complete the acquisition. We will complete around the middle of next year,” TSH group managing director Datuk Tan Aik Sim told a press conference after the group’s extraordinary general meeting yesterday.

On the expected dampened crude palm oil (CPO) market in the third quarter of this year, TSH chairman Datuk Kelvin Tan Aik Pen said the group will continue to focus on maintaining its yields and minimising costs, despite lower prices.

“When prices come down, plantation companies across the board will be affected. We will not focus on the prices, as we are a taker of prices, not the setter. We continue to look at our costs and our yields,” Kelvin said.

TSH has maintained above average fresh fruit bunch yield of 30 tonnes per hectare over 2011, 2012 and 2013, beating the industry average of 19.

The group has also managed to keep its average CPO production costs over the three years at RM830 per tonne — below the industry average of around RM1,200 to RM1,300.

 

This article first appeared in The Edge Financial Daily, on October 14, 2014.