Genting Plantations buys oil palm firm for RM407.58 million

PETALING JAYA: Genting Plantations Bhd is acquiring the entire stake in oil palm plantation firm Knowledge One Investment Pte Ltd for US$94.97 million (RM407.58 million).

The group told Bursa Malaysia that its 100% indirect subsidiary AsianIndo Holdings Pte Ltd had entered into a conditional sale and purchase agreement with Lee Rubber Company (Pte) Ltd for the acquisition.

Genting Plantations said the proposed acquisition will increase its combined plantation landbank in Malaysia and Indonesia by 14,661 hectares from its present 227,936 hectares to 242,597 hectares.

"It also accelerates the group's upstream expansion in Indonesia as some 12,893 hectares has already been planted, thus increasing the group's total planted area in Indonesia to 84,833 hectares (from 71,940 hectares as at December 31, 2016) or an increase of 17.9%," it noted.

Genting Plantations shares rose 12 sen to close at RM10.48 on Friday on some 226,400 shares done, giving it a market capitalisation of RM8.42 billion.