Thursday 28 Mar 2024
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KUALA LUMPUR (Oct 13): 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 9,000 hectares 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 would complete around the middle of next year,” TSH Managing Director Datuk Tan Aik Sim told a press conference, after the group’s extraordinary general meeting today.

On the expected dampened crude palm oil market in 3QFY14, 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,” Tan said.

TSH has maintained above average fresh fruit bunches (FFB) yield of 30.0 tonnes per hectare over 2011, 2012 and 2013, beating the industry average of 19.0.

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.

At the noon break, TSH Resources shares were down 1 sen at RM3.28, bringing its market capitalisation to RM2.92 billion.

 

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