KUALA LUMPUR (Nov 12): Sarawak-based planter Rimbunan Sawit Bhd (KL:RSAWIT) is planning to sell 613 hectares of oil palm plantation land in Sarawak for RM18.39 million cash to a charitable trust chaired by state Premier Tan Sri Abang Johari Tun Openg.
The group's wholly owned unit, RH Plantation Sdn Bhd, has signed a sale and purchase agreement with Lembaga Amanah Kebajikan Masjid Negeri Sarawak (LAKMNS) on Thursday for the proposed disposal, according to its filing with Bursa Malaysia.
Rimbunan Sawit said the disposal would streamline its plantation portfolio, unlock the value of its investment and generate cash for working capital.
“The proposed disposal will also enable Rimbunan Sawit to reduce the future management and development expenditure associated with the land and focus its financial and management resources on the remaining estates and mills,” it said.
The land, located along Sungai Bok in Bakong, Baram, will be sold for RM30,000 per hectare. The consideration is about 2.17% above the RM18 million market value assessed by independent valuer Henry Butcher Malaysia (Miri) Sdn Bhd on Sept 15.
Buyer LAKMNS is an Islamic charitable trust governed by Sarawak’s Charitable Trusts Ordinance 1994, supporting the religious, educational and welfare needs of the Muslim community.
The trust already has an ownership connection to the original landholding through its wholly owned subsidiary Lubuk Tiara Sdn Bhd.
The 613-hectare oil palm plantation is carved out of a larger landholding jointly owned by RH Plantation (11.7%) and Lubuk Tiara (88.3%).
These ownership proportions initially remained unchanged in the parcel being sold.
However, under a partition agreement dated Dec 13, 2021, Lubuk Tiara subsequently transferred its entire interest in the 613-hectare parcel to RH Plantation.
RH Plantation first paid a premium of RM1.84 million for the land back in Dec 30, 1999. The parcel has an audited net book value of RM1.13 million as at Dec 31, 2025. About 446.79 hectares are planted with oil palm aged between two and four years. The land’s 60-year lease expires on Dec 29, 2059.
LAKMNS will pay a 10% deposit of RM1.84 million upon signing, with the remaining RM16.55 million payable within three months after the agreement becomes unconditional.
Its 11-member board includes Deputy Premier Datuk Amar Awang Tengah Ali Hasan as deputy chairman. Other trustees include state deputy ministers Datuk Sharifah Hasidah Sayeed Aman Ghazali and Datuk Dr Annuar Rapaee, as well as Mukah MP Datuk Hanifah Hajar Taib
Completion is expected in the first half of 2027, subject to regulatory approval. Shareholder approval is not required, and Rimbunan Sawit said none of its directors, major shareholders or persons connected to them has an interest in the transaction.
Earlier this year, Rimbunan Sawit sold the 1,504-hectare Sastat Estate in Baram to Trinity Capital Resources Sdn Bhd for RM28 million.
Rimbunan Sawit said that sale would help it exit a remote estate with high transportation costs and limited integration with its other estates and mills.
Shares of Rimbunan Sawit closed half a sen lower at 14 sen on Thursday, valuing the group at RM296.1 million. Year-to-date, its share price is down nearly 20%.