Matang resubmits bid for Raub land, palm oil mill and other assets

PETALING JAYA: Matang Bhd has resubmitted its bid to buy two parcels of land measuring 4219.79 acres in Raub, Pahang, after it failed to acquire the lots two months ago.

The indicative purchase price is RM180 million, which is subject to adjustments based on the outcome of the due diligence and an adjustment mechanism to the purchase price to be agreed upon in the sale and purchase agreement (SPA).

Recall that Matang made its tender for the land in April at an undisclosed sum. In May, the group announced that its bid had been unsuccessful and its deposit had been refunded. It is not known if the pricing now is the same as that of the initial bid.

In a filing with the stock exchange yesterday, Matang said it had issued a letter of intent to Raub Mining & Development Co Sdn Bhd (RMDC) and Raub Oil Mill Sdn Bhd (ROM) setting out its intention through its wholly owned subsidiary Matang Holdings Bhd or its nominees for the acquisition again.

The acquisition includes a 60-tonne/hour palm oil mill as well as buildings, quarters, plant and machinery, equipment, vehicles and stocks of the estate and mill.

Upon the acceptance of the letter of intent by RMDC and ROM, Matang said, the parties will begin the process of due diligence and negotiations in good faith to finalise and agree on the SPA and other related documentation for the purchase of the assets.

Matang has said its acquisition is in line with the group’s plan to expand its oil palm operations, which is expected to contribute positively to its future revenue and profit.

Matang shares were unchanged at 12 sen yesterday on some 8.68 million units done, giving the company a market capitalisation of RM217.2 million.