KUALA LUMPUR (April 13): PLS Plantations Bhd has aborted its plan to invest RM50 million into a 51:49 joint venture (JV) with Landasan Erajaya Sdn Bhd to undertake cash crop plantation activities in Pahang.
PLS and Landasan Erajaya have mutually agreed to not further extend their binding term sheet for the collaboration, the durian and oil palm planter said in a Bursa Malaysia filing on Thursday (April 13).
The parties had inked the binding term sheet for the collaboration in August last year, and agreed to a four-month extension in December to negotiate and execute a definitive agreement.
PLS previously said that if the collaboration materialised, Landasan Erajaya will utilise the RM50 million from PLS to undertake intercrop and cash crop plantation activities, including construction, operation, planting, farming or maintenance works.
Under the collaboration, PLS was to have a 51% share of net earnings generated from the sale of the harvested cash crops, agriculture and aquaculture, while the remaining 49% was for Landasan Erajaya.
Landasan Erajaya is the concession holder to carry out the reforestation project and agricultural related plantation over designated lands in Pahang, according to PLS.
PLS’ largest shareholder is executive vice-chairman Tan Sri Lim Kang Hoo with a 68.78% stake via Ekovest Bhd, followed by managing director Tan Sri Lim Kang Yew with 8.52%.
For the second quarter ended Dec 31, 2022, PLS’ net profit fell 77.62% to RM1.65 million from RM7.38 million a year earlier, as revenue dropped 41.23% to RM33.65 million from RM57.26 million.
Shares in PLS ended two sen or 2.15% higher at 95 sen, giving the group a market capitalisation of RM417.64 million.