Boustead Plantations to buy land, assets in Sabah for RM750m

PETALING JAYA: Boustead Plantations Bhd’s wholly-owned subsidiary Boustead Rimba Nilai Sdn Bhd issued a letter of intent (LoI) to Pertama Land & Development Sdn Bhd for the proposed acquisition of 42 parcels of plantation land in the district of Labuk & Sugut, Sabah, measuring about 11,579.31ha inclusive of all movable fixed assets, machinery and vehicles at the property for RM750 million cash.

The LoI was accepted by vendor Pertama Land yesterday.

Meanwhile, Boustead Plantations’ net profit for the second quarter ended June 30, 2017 fell to RM22.70 million from RM97.55 million a year ago, mainly because of the absence of a gain on disposal of plantation land of RM89.6 million included in 2016.

Revenue slipped 3% to RM169.49 million from RM174.92 million in the previous corresponding quarter.

For the six months period, the group’s net profit was halved to RM66.37 million from RM140.14 million a year ago, while revenue rose 15% to RM358.51 million from RM311.9 million in the previous year’s corresponding period.

Boustead Plantations share price was unchanged at RM1.66 with 354,800 shares traded yesterday.