KUALA LUMPUR (Apr 19): MCA-linked Matang Bhd is bidding for two parcels of leasehold oil palm land measuring a collective 4,219.79 acres in Raub, Pahang, together with a 60-tonne per hour palm oil mill there.

Matang has submitted the tender to Raub Mining & Development Company Sdn Bhd and Raub Oil Mill Sdn Bhd for the acquisitions, and the results of the bidding are expected to be received by July 19, according to the group's Bursa Malaysia filing today.

Matang said payment for the purchase consideration shall be in cash, which is expected to be raised via bank borrowings and through fund raising exercises to be proposed by the company.

Matang said the acquisition of the land and oil mill, if it materialises, is in line with the its plan to expand its oil palm operations which is expected to contribute positively to future revenue and profits.

“After due consideration of the rationale and prospects, the board is of the opinion that the acquisition of the proposed land and oil mill is in the best interest of the company,” the filing read.

Matang shares settled unchanged at 13 sen today, giving it a market capitalisation of RM235.3 million.