This article first appeared in The Edge Financial Daily on July 19, 2017 - July 25, 2017

KUALA LUMPUR: Matang Bhd is looking to acquire two contiguous parcels of leasehold agricultural land in Raub, Pahang, which measure a total of 4,219.79 acres (1,707.69ha) for RM180 million.

In a filling with Bursa Malaysia yesterday, Matang said it had issued a letter of intent (LoI) to Raub Mining & Development Company Sdn Bhd (RMDC) and Raub Oil Mill Sdn Bhd (ROM), setting out its intention to buy the plots.

The proposed purchase will include the oil palm plantation, buildings, plant, machinery, equipment and a palm oil mill on the land, as well as vehicles and stocks of the aforesaid plantation and mill, said Matang.

Matang said the LoI is not intended to be legally binding for the parties until and unless with a formal definitive agreement and other relevant documentation.

“Upon the acceptance of the LoI by RMDC and ROM, the parties shall commence the process of due diligence and negotiations in good faith to finalise and agree on the sale and purchase agreement and other related documentation for the purchase of the assets,” said Matang.