Greenyield secures shareholders’ approval to buy asset in PNG

0
1

KUALA LUMPUR: Greenyield Bhd has obtained approval from its shareholders at an EGM to purchase a 65% fairness curiosity in Greenyield Rubber Holdings (M) Ltd (GRHM) for RM87.8mil.

In a press release, the horticultural specialist mentioned GRHM is an funding holding firm and serves as an agent to market and promote rubber and rubber wooden, whereas its subsidiaries are principally concerned in the extraction, processing, and provide of rubber in addition to agriculture.

It owns 15,313 hectares of plantation properties in Papua New Guinea (PNG) comprising, inter alia, 6,450 Ha plantable space for rubber (of which 3,513 Ha are planted), and three,613 Ha plantable space for coconut.

Executive director Tham Kin-On mentioned: “We are certainly delighted to have received the green light from our shareholders for the proposed acquisition and the group is now one step closer to owning 15,313 Ha of plantation land in PNG.”

“We believe the timing is opportune as the target asset has turned profitable, and we can ride on the uptrend in demand growth for rubber and coconut going forward.

“More importantly, we are pleased that our shareholders share the same sentiments with us and understand the potential and benefits arising from this exercise,” he added.

Tham mentioned the proposed acquisition would improve its earnings stream and supply the group with higher supply of recurring earnings, which might be additional enriched with crop diversification to embody coconut bushes.

“At the same time, Greenyield can extend the use of its plantation products and technology to boost productivity. The group targets to plant and replant up to 500 Ha and 300 Ha of rubber and coconut trees respectively every year,” he added.

Greenyield mentioned the train is anticipated to be accomplished by the third quarter of 2022 barring any unexpected circumstances, and topic to all requisite approvals being obtained.

The proposed acquisition is deemed a associated get together transaction given the frequent pursuits of sure administrators and main shareholders in each the goal asset and Greenyield.

Accordingly, the administrators and main shareholders had abstained from voting and the decision was handed by the non-interested shareholders of Greenyield.



Source link