Kuala Terengganu, March 6 \u2013 TDM Bhd has entered into a Heads of Agreement (HOA) with Terengganu Incorporated Sdn Bhd (TI) to acquire a 42.64% stake in Ladang Rakyat Trengganu Sdn Bhd (Ladang Rakyat).\u00a0<\/p>\n
The proposed acquisition will increase TDM\u2019s current shareholdings in Ladang Rakyat from 19.12% (held via its subsidiary) to 61.76%. Ladang Rakyat has a planted oil palm plantation area of 11,467 hectares (ha) in Terengganu with an average tree age profile of 9 years.\u00a0<\/p>\n
Currently, TDM\u2019s planted oil palm area stands at 44,493 ha, consisting of 31,848 ha in Terengganu and 12,645 ha in Kalimantan, Indonesia. The acquisition will boost TDM\u2019s total planted oil palm area in Terengganu alone from 31,848 ha to 43,315 ha.\u00a0<\/p>\n
This move will also bring down the average age profile of TDM\u2019s oil palm trees in Terengganu by 1.5 years, from 15.4 years to 13.9 years and this is expected to improve production yields moving forward.\u00a0<\/p>\n
Group Managing Director of TDM, Datuk Mohamat Bin Muda said, \u201cWe are incredibly pleased with this opportunity as it is a step in the right direction in improving our operational efficiencies and presents significant synergistic opportunities for the Group. By having a larger plantation area in Terengganu, we would be able to achieve economies of scale in plantation management.\u201d\u00a0<\/p>\n
\u201cAt TDM, we have been RSPO certified since 2014 and this has enabled us to enjoy a better premium from the sale of our crude palm oil. We are confident of implementing our best practices to achieve RSPO certification for Ladang Rakyat\u2019s plantations as well. That way, the entire Group will benefit from higher selling prices and improved earnings,\u201d he added.\u00a0<\/p>\n
For the financial year ended 31 December 2015, Ladang Rakyat reported revenue and profit after tax and minority interest (PATAMI) of RM194.3 million and RM4.1 million respectively. As Ladang Rakyat is profitable, the acquisition is expected to be earnings accretive and will contribute positively to the Group\u2019s financial performance.\u00a0<\/p>\n
The acquisition is in line with TDM\u2019s aspiration to expand its planted area to reach 100,000 ha. It aims to be a pure plantation player and one of the leading producers of certified sustainable palm oil (CSPO) within the next three to five years.<\/p>\n
\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
Kuala Terengganu, March 6 \u2013 TDM Bhd has entered into a Heads of Agreement (HOA) with Terengganu Incorporated Sdn Bhd (TI) to acquire a 42.64% stake in Ladang Rakyat Trengganu Sdn Bhd (Ladang Rakyat).\u00a0 The proposed acquisition will increase TDM\u2019s current shareholdings in Ladang Rakyat from 19.12% (held via its subsidiary) to 61.76%. Ladang Rakyat […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[],"class_list":["post-183","post","type-post","status-publish","format-standard","hentry","category-corporate"],"_links":{"self":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/183","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/comments?post=183"}],"version-history":[{"count":1,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/183\/revisions"}],"predecessor-version":[{"id":6406,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/183\/revisions\/6406"}],"wp:attachment":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/media?parent=183"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/categories?post=183"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/tags?post=183"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}