By Sharen Kaur
sharen@nstp.com.my
Published in NST on August 27, 2012
KUALA LUMPUR: Medium-size planter Kamunting Plantation Sdn Bhd is on the lookout for merger and acquisition (M&A) opportunities in a bid to speed up the listing of the company.
The company is mulling listing its business on the local stock exchange in about three years, says its executive director, James Chan Kean Chiu.
"It could be faster, depending on the M&A opportunities. We are interested to acquire small plantation companies to create synergistic values. We also plan to acquire plantation land in Perak, Sabah and Indonesia and are looking at several deals now," Chan told Business Times in a recent interview.
According to Chan, Kamunting Plantation is aiming to become a large scale player in the industry, to join the ranks of companies like TSH Resources Bhd and unlisted Pontian United Plantations Bhd.
Kamunting Plantation, which ventured into the plantation business in the 1990s, is founded by Chan's father, Datuk Chan Wan Kah, a prominent businessman with interest in property development and resort operation in Malaysia and Australia.
The company currently owns a fully planted 640ha estate in Perak. It invested some RM20 million in the last three years on replanting the palm oil trees and managing the estate, Chan said.
In Sumatera, Kamunting Plantation has a 30-year concession with rights to acquire and develop 14,000 ha. It has spent over RM30 million since the 1990s to acquire 1,500 ha and plant palm oil trees.
"We have managed to reap an average fresh fruit bunch (FFB) harvest of about 31 tonnes per hectare a year, from both the estates. This is higher than the average rate," Chan said.
"As a medium-size planter we invests a lot in the business from the seedlings and fertilisers to infrastructure. So production is better," he added.
Chan said Kamunting Plantation will acquire an additional 1,500ha in Sumatera within the next three to five years.
"We will slowly acquire land, compensate the locals and start planting. As the plantation grows, we will have a bigger cash base to buy the estate and expand," Chan said.
On the outlook of the industry, Chan expects crude palm oil (CPO) price to rise because of shortage of fruits, attributable to the current dry weather. Currently, the CPO price is hovering around RM3,000 a tonne.
sharen@nstp.com.my
Published in NST on August 27, 2012
The company is mulling listing its business on the local stock exchange in about three years, says its executive director, James Chan Kean Chiu.
"It could be faster, depending on the M&A opportunities. We are interested to acquire small plantation companies to create synergistic values. We also plan to acquire plantation land in Perak, Sabah and Indonesia and are looking at several deals now," Chan told Business Times in a recent interview.
According to Chan, Kamunting Plantation is aiming to become a large scale player in the industry, to join the ranks of companies like TSH Resources Bhd and unlisted Pontian United Plantations Bhd.
The company currently owns a fully planted 640ha estate in Perak. It invested some RM20 million in the last three years on replanting the palm oil trees and managing the estate, Chan said.
In Sumatera, Kamunting Plantation has a 30-year concession with rights to acquire and develop 14,000 ha. It has spent over RM30 million since the 1990s to acquire 1,500 ha and plant palm oil trees.
"We have managed to reap an average fresh fruit bunch (FFB) harvest of about 31 tonnes per hectare a year, from both the estates. This is higher than the average rate," Chan said.
"As a medium-size planter we invests a lot in the business from the seedlings and fertilisers to infrastructure. So production is better," he added.
Chan said Kamunting Plantation will acquire an additional 1,500ha in Sumatera within the next three to five years.
"We will slowly acquire land, compensate the locals and start planting. As the plantation grows, we will have a bigger cash base to buy the estate and expand," Chan said.
On the outlook of the industry, Chan expects crude palm oil (CPO) price to rise because of shortage of fruits, attributable to the current dry weather. Currently, the CPO price is hovering around RM3,000 a tonne.
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