TH Plantation plans de-gearing to buffer financial position

KUALA LUMPUR: TH Plantations Bhd is looking at measures, including issuing warrants or perpetual bonds as well disposing less productive assets, to buffer its financial position.
Its CEO Datuk Zainal Azwar Aminuddin said that its gearing level at 0.71 times is already at maximum level, which makes the company very susceptible if CPO prices fall below RM2,300 per tonne.
"We would like to do a de-gearing and paring down of loans. A gearing of 0.5 times would be palatable as the first stage. We want a buffer so that if (CPO) prices fall to RM1,800 per tonne we can still have profit," he told reporters after its AGM here today.
He said some of the possible measures include issuing of warrants or perpetual bonds and disposal of less productive assets. However, no decision has been made yet as the group is only at the proposal stage.