TSH Resources Bhd (TSH) today stated that it intends to sell two oil palm estates and one palm oil mill in Sabah for a total cash consideration of RM248 million. According to a Bursa Malaysia filing, the group is selling the assets to Sharikat Keratong Sdn Bhd, an oil palm plantation company.
“The board has determined that, because the value of the disposal properties has increased significantly over time, TSH is in a position to realize the significant gain in value through the proposed disposal, as well as unlock and realize the value of TSH Group’s investments in the disposal properties.” TSH Group will be able to reduce its existing borrowings with the income generated, according to TSH.
It claimed that it would be able to save money on land clearing and replanting in the coming years because a large section of the estates are scheduled for replanting.
The proposed sale includes three transactions, the first of which is the sale of 2,489 acres of oil palm plantation land known as Ladang Gomantong for RM76 million in cash.
Another RM152 million deal involves the sale of 4,942 acres of oil palm plantation property known as Ladang Ong Yah Ho, while a third RM20 million transaction involves the sale of a palm oil mill known as Lahad Datu Palm Oil Mill.
TSH’s stock remained unchanged today at 99 sen, valuing the company at RM1.37 billion./n
