KUALA LUMPUR (Sept 1): Sarawak Plantation Bhd (SPB) is acquiring two parcels of land with existent oil palm plantations in Batang Baram and Tinjar, Miri, for RM76 million to expand its landbank in Sarawak.

SPB said the purchase is being undertaken via its wholly-owned unit, Sarawak Plantation Agriculture Development Sdn Bhd, which today signed the deal with Magna Wide Sdn Bhd and Magna Wide Enterprise Sdn Bhd.

The 1.9-hectare land is mostly planted with oil palm aged between one- and four-years old, SPB said in a filing to Bursa Malaysia.

“The FFB (fresh fruit bunches) production output from the lands is expected to improve over the next few years, due to the maturing of these oil palm trees.

“The proposed acquisition represents a strategic investment and is expected to contribute positively to SPB’s earnings and shareholders’ value in the medium to long term,” it said.

SPB said the acquisition would be funded using internally-generated funds and bank borrowings, and is expected to be completed by the third quarter of 2017.

SPB’s share price closed flat at RM1.79 today, giving the company a market capitalisation of RM500.42 million.