Thursday 20 Mar 2025
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KUALA LUMPUR (Dec 21): Sarawak-based plantation group Rimbunan Sawit Bhd has proposed to dispose of 9,935 hectares of oil palm land in Miri for a total of RM165 million to help repay its debts.

The group is selling Selangor Estate (with a total area of 4,857 hectares) for RM90 million and Jayamax Estate (comprising 5,078 hectares) for RM75 million, to another oil palm company Mahawangsa Sungai Bok Plantation Sdn Bhd.    

The proceeds will be used "for the partial repayment of its interest-bearing borrowings which will, among others, lower the group’s gearing level from 0.99 times to 0.61 times and improve the ability of the group to borrow further should new business opportunities arise, as well as improve the group’s cash flow position due to lower interest expense", Rimbunan Sawit said in a bourse filing.

“In addition, part of the proceeds of the proposed disposals will be channelled towards the group’s business operations as it will be utilised for new planting and replanting of oil palm," it added.

The group expects to record a pro forma gain of RM77.94 million from the disposal of the two estates.

Including the two estates, Rimbunan Sawit has 16 oil palm estates in Kuching, Sibu and Miri, with a total planted area of 42,478 hectares, representing 60.76% of the group’s total land bank of 69,909 hectares. The group also owns three palm oil mills in Kuching and Miri.

Shares in Rimbunan Sawit finished one sen or 7.14% higher at 15 sen, giving the group a market capitalisation of RM317.2 million.

Edited ByS Kanagaraju
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