Puncak Niaga [M] Sdn Bhd Executive Engineer Operation Division, Zulkefly Abdollah checking the water level at Sungai Langat water treatment plant in Hulu Langat. AZMAN GHANI / The Star
KUALA LUMPUR: Puncak Niaga Holdings Bhd
, which has been exploring new business opportunities following the disposal of its water service assets to the Selangor government 12 months ago, is venturing into the oil palm plantation sector.
The Shah Alam-based company, whose continuing operations (water and wastewater, construction and oil & gas businesses) had up to June this year posted losses, told Bursa Malaysia that 60%-owned Danau Semesta Sdn Bhd had inked an agreement to acquire plantation company Danum Sinar Sdn Bhd from Shin Yang Holding Sdn Bhd (SYHSB) for RM446.5mil in cash.
Danum Sinar is said to have “legitimate expectation from the state government of Sarawak” for the issuance of the provisional lease of 46,674ha leasehold land in the state.
Of the Sarawak land, 9,766.9ha has been planted. The planted portion of 9,766.90ha was valued at at RM18,500 per acre, subject to the final survey, while the unplanted portion at RM3,500 per acre.
Puncak Niaga subscribed to a 60% stake in Danau Semesta on Monday as well, paying RM600,000 for the share subscription.
Puncak Niaga’s partners in subsidiary Danau Semesta are Sunshine Upland Sdn Bhd (30%), a property and hotel company controlled by Tan Sri Yee Ming Seng, and Astaka Suria Sdn Bhd (10%), a company controlled by Tan Sri Ling Chion Ho, whose family controls SYHSB.
On the rationale for the proposed acquisition, the company said: “The proposed acquisition presents an opportunity, being both attractive strategically (given the sizable land bank under one title) and financially to Puncak to venture into the oil palm plantation sector, that has the ability to generate a steady flow and recurring source of income over a long period of time,”
Barring any unforeseen circumstances, Puncak Niaga said the proposed acquisition was expected to be completed in the first quarter of 2017. with to acquire its for RM446.5mil cash.
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