KUALA LUMPUR (March 15): BLD Plantation Bhd is buying Pekan Semangat Sdn Bhd from multiple vendors for RM155.22 million cash, which will give it an additional 5,442 hectares (ha) of plantation lands.

In a filing with Bursa Malaysia today, BLD Plantation said it has entered into a share sale agreement (SSA) with Pekan Semangat's directors and shareholders, Loi Heng Sewn, Lau Yong Lee, Albert Hong Hin Kay and Dr Ngoi Sing Shang, to acquire a 100% stake in the latter.

According to the plantation company, Pekan Semangat's 70%-owned subsidiary Agrogreen Ventures Sdn Bhd has two parcels of provisional lease of state lands, totalling 5,442ha, out of which not less than 5,000ha have been developed into an oil palm plantation.

"The proposed acquisition is consistent with BLD Plantation's plans to continue to expand its oil palm cultivation business by acquiring new land bank in Malaysia, particularly in Sarawak," it said, adding this represents a strategic investment by the group.

"The board believes that with the increase in the size of the land bank pursuant to the proposed acquisition, it will put the group on a strong footing to become one of the major players in the oil palm cultivation business in Malaysia," it added.

It targets to complete the deal within 150 days from the date of SSA.

Shares in BLD Plantation closed 27 sen or 3.1% higher at RM8.97, for a market capitalisation of RM838.69 million.