18/03/2008 (The Star Online), Petaling Jaya - IOI Corporation Bhd is expanding its oil palm plantations in Sarawak by proposing to acquire a major stake in several companies for RM439.85mil.
It said these companies owned a combined 44,350ha of land in the state, of which 13,500ha was planted with oil palm. Of the total area, 4,500 ha or 33% of the planted area was mature and the remaining 9,000ha would be maturing progressively.
“IOI Group intends to progressively develop the remaining 30,850ha of non-planted areas into oil palm plantations within the next few years,” it said in a statement to Bursa Malaysia on Tuesday.
The company said its effective stake in the plantation lands owned by the acquiree companies was equivalent to about 65% in value terms while Sarawak’s Land Custody and Development Authority and local natives mainly held the balance.
“The ownership structure therefore, enables IOI Corp to lead and manage the oil palm cultivation whilst enabling the State and the local natives to also share the benefits in the success of the business, thereby providing long-term benefits to the local community,” it said.
IOI Corp said the purchase consideration was based on the current valuation for the 44,350ha of plantation land, of which 13,500ha was planted and a 60-tonne-per-hour palm oil mill.
The IOI Group owns 169,450ha in Malaysia (of which 149,000ha is planted) and another 152,000ha in Indonesia, of which 43,000ha is planted, via a joint venture.
“The proposed acquisition will therefore increase the Group’s plantation holdings to 213,800ha in Malaysia and to 365,800ha overall,” it said.
It said the acquisition would provide immediate income contribution due to matured oil palm trees. The proposed acquisition would also provide synergistic benefits to the group’s plantation operation in Sarawak where it has 9,000ha.