Boustead Plantations disposes of Johor land to YTL Power’s unit for RM429m
28 September 2021
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28 September 2021KUALA LUMPUR: Boustead Plantations Bhd is selling 664 hectares of land in Kulai, Johor to SIPP Power Sdn Bhd for RM428.8mil cash.
The five parcel of land, collectively known as Kulai Young Estate, is located 43km from Johor Baru.
SIPP Power in a wholly owned subsidiary of YTL SIPP Power Holdings Sdn Bhd, which in turn is a subsidiary of YTL Power International Bhd.
“The proposed disposal provides an opportunity for Boustead Plantations to monetise and rebalance its assets as part of its reinvention strategy and realise the economic value of Kulai Young Estate at a favourable price,” it said.
Boustead Plantations said the deal was done a premium above the estate’s market value of RM390mil, based on a valuation by CH Williams Talhar & Wong Sdn Bhd.
Boustead is expected to realise an estimated net gain on disposal of approximately RM323mil, or an upfront gain of RM486,400 per hectare. This will increase Boustead Plantations’ shareholders’ equity value by about 14.42 sen per share.
The company said it has set aside RM361mil for repayment of bank borrowings, while RM26.9mil was allocated for working capital purposes, while the remaining RM40mil will for tax and other expenses.
Source: The Star
