Greenyield buys remaining 70% stake in rubber planting firms for RM1.57m

PETALING JAYA: Greenyield Bhd is acquiring the remaining 70% stake in SND Teguh Enterprise Sdn Bhd and Pullah PC Dauh Sdn Bhd for RM1.57 million and assumption of liabilities of RM11.48 million.
Greenyield told Bursa Malaysia that its wholly-owned subsidiary Gim Triple Seven Sdn Bhd had on September 21 entered into an agreement with Seri Sanjung Development Sdn Bhd for the acquisition.
Both SND and Pullah are involved in rubber planting and estate management and own the rights to develop and cultivate timber latex clones on 400 hectares of land in Kelantan for a period of 50 years from 28 March 2013.
Greenyield said the proposed acquisitions will enable it to shift from being a minority shareholder in SND and Pullah to being the sole shareholder in both entities.
“This is in line with Greenyield’s long term strategy of expanding its business from supplying tools, chemicals, and fertilisers to plantations, to also include plantation ownership. With tapping of plantations under SND and Pullah which would commence from 2019, the proposed acquisitions are expected to enhance earnings for shareholders of Greenyield.”
In a separate filing, Greenyield said its is disposing of a 30% stake in rubber planting firm Melati Aman Sdn Bhd (MASB) for RM11.8 million.
“The proposed disposal enables Greenyield to exit a minority stake in MASB along with the exit by MASB’s majority shareholder, and at a price which is deemed fair and reasonable by the board. The proposed disposal would also raise proceeds for Greenyield to undertake future corporate exercises involving other viable businesses or assets.”
However, the proposed disposal is expected to result in a loss of RM2 million for the group.