FGV acquires four firms, land for RM655mil

Felda Global Ventures Holdings Bhd (FGV) is acquiring four plantation-based companies and a parcel of oil palm land in Sabah measuring 836.1ha from Golden Land Bhd for RM655mil in cash.

For FGV, the proposed acquisitions are expected to improve its brownfield land and age profile of its oil palms.

Meanwhile, Golden Land sees the proposed disposals as offering an opportunity for the group to unlock and realise the value of its investments in the companies and land being sold.

But the disposal may see Golden Land to be classified as an “affected listed issuer” and/or a “cash company” pursuant to Practice Note 16 and Practice Note 17 (PN17) of the Listing Requirements. This implies that the company will have to submit a regularisation plan since the board intends to maintain its listing status.

Golden Land and FGV revealed that FGV’s subsidiary Pontian United Plantations Bhd and/or its nominee had signed a conditional sale and purchase agreement to acquire Golden Land’s four subsidiaries and land in Beluran.

The land is currently charged to Hong Leong Bank Bhd (HLBB) as part of the security for loan given to Golden Land. Its market value, as assessed by CH Williams Talhar & Wong (Sabah) Sdn Bhd, is RM71.72mil.

To facilitate the discharge of charge on land, Golden Land will obtain a redemption statement from HLBB for the security’s partial release in respect to the loan extended to the company by HLBB.

Golden Land will also secure the redemption statement by the relevant financiers in respect to the borrowings of the four subsidiaries as well as for the purpose of releasing all securities provided by the companies as third party securities for any of Golden Land group’s borrowings.

Notably, the sale and purchase of the shares and land is expected to be completed in three months from the unconditional date or any other date that FGV and Golden Land may decide later.

Golden Land estimates that the group may gain RM15.23 million from the proposed disposals. However, the company is yet to determine the amount of the net proceeds as well as on how the money will be used.

The sale and purchase of the land and the shares will be completed within three months from the unconditional date or any other date that Golden Land and FGV decide later.

Golden Land estimated that the group would gain RM15.23mil from the proposed disposals. However, it has yet to determine the amount of the net proceeds and how exactly the money would be used.

Golden Land, which will still own about 8,497ha of plantation lands after the proposed exercise, said the disposals may trigger criteria under PN17.

Land & General Bhd is buying 112 acres land in Bukit Raja

Land & General Bhd is buying Pembinaan Jaya Megah Sdn Bhd (PJMSB), which is undertaking alienation of 112.353 acres of leasehold land in Bukit Raja, Selangor, for RM90mil. This translates to RM801k per acre or RM18psf.

The property and plantation firm told Bursa Malaysia recently that it planned to develop the land into a residential and commercial development. No details were given.

The vendors of PJMSB are Tengku Sulaiman Shah Al-Haj Ibni Almarhum Sultan Salahuddin Abdul Aziz Shah Al-Haj (30%) and Datuk Hui Swee Seong and family (70%).

Meanwhile, the District and Land Office of Petaling has given its approval for the alienation of the land in November last year. The expiry of the 99-year lease period is not yet available pending completion of the alienation of the Land and issuance of land title(s).

The proposed acquisition is expected to be completed by the second quarter of 2016.

The proposed acquisition will expand the land bank of the LandG group to facilitate future development projects and will contribute positively to the future earnings and cash flows of the group in line with our core business, it said, adding that it intends to develop the land as a residential and commercial development.

LandG said it intends to finance the purchase consideration through internally generated funds and bank borrowings.

MRCB to develop Brickfields land

Malaysian Resources Corp Bhd will demolish the five acre site, known as Lot 349/100 in Brickfields, here starting tomorrow and works to complete in two months. The property developer will then build three 40-storey towers comprising mainly high end residential units, after the transfer of land from the government is completed. The project will be connected to the multi-billion ringgit Kuala Lumpur Sentral transportation hub, riding on rail connectivity, said MRCB executive vice president Datuk Dell Akhbar Khan at a briefing here.

Source : New Straits Time , 26 MAY 2015