KUALA LUMPUR, Malaysia (July 5): NPC Resources Bhd, which is in the red, has accepted a non-binding offer from IOI Corp Bhd to buy its Sabah properties for an indicative price of RM281.23 million. However, the offer is contingent on the results of due diligence on the properties and the completion of the definitive binding agreement by September 30, according to NPC’s filing with Bursa Malaysia.
The first section of the holdings consists of 3,746 planted hectares of palm oil farm land in the Labuk & Sugut, Kinabatangan, and Beluran districts.
According to NPC, these parcels of land are worth RM226.58 million at the indicated price.
The second half of the properties is an 881.35 planted hectare plot of land in Labuk and Sugut that Berkat Setia Sdn Bhd, a subsidiary of NPC, possesses development rights from Koperasi Kakitangan Perkhidmatan Pelajaran Sabah Bhd under a 1999 agreement for the land’s development.
The cooperative and Berkat Setia will share this land, which is estimated to be worth RM54.64 million.
“Upon signature of the definitive agreements, a further announcement will be issued in compliance with Bursa Malaysia Securities Bhd’s Main Market Listing Requirements,” NPC added.
To summarize, the Sabah-based oil palm plantation group recorded a net loss of RM11 million in fiscal year 2020 (FY20), compared to a loss of RM12.24 million in fiscal year 2019, while sales climbed 17.46 percent to RM264.64 million from RM225.3 million in fiscal year 2019.
NPC’s stock climbed one sen, or 0.53 percent, to RM1.90 per share today, for a market capitalization of RM228 million./n
