KUALA LUMPUR (May 2): Matang Bhd has proposed to acquire a Johor-based oil palm cultivation company for RM30.57 million, to further expand its land banks for oil palm and durian plantations.

The acquisition of Greencode Farm Sdn Bhd (GFSB) from its 10 shareholders will result in Matang’s plantation land size rising by over 5% or 56 hectares (ha) to 1,150ha, the group said in a bourse filing.

GFSB’s freehold agricultural land is located in Batu Pahat, comprising 39ha of oil palm trees and 17ha of durian trees.

“Matang group is expected to realise additional revenue and profit with the consolidation of fresh fruit bunches and durian productions from GFSB’s mature yielding plantations,” said Matang.

GFSB’s profit after taxation increased from RM430,298 for the year ended Dec 31, 2020 (FY2020) to RM478,870 in FY2021 and RM610,782 in FY2022.

Its revenue rose from RM712,847 in FY2020 to RM798,243 in FY2021 and RM1.06 million in FY2022.

The company also has zero total borrowings, said Matang.

The market value of GFSB is RM32 million, based on a valuation report dated April 6 issued by independent valuer PPC International Sdn Bhd. Thus, Matang’s purchase consideration represents a discount of 4.48%.

Matang’s share price closed unchanged at 9.5 sen on Tuesday (May 2), valuing the group at RM215.63 million.