KUALA LUMPUR, Aug 25 — Boustead Plantations Bhd’s acquisition of an oil palm plantation land in Labuk, Sabah from Lubah Plantations (S) Sdn Bhd for RM38.21 million will not be materialised as the sale and purchase agreement (SPA) lapses today.

In a filing to Bursa Malaysia, the plantation company said the agreement was lapsed due to the non-fulfilment of one of the conditions precedents (CPs) stipulated in the SPA within the extended conditional period of up to August 24, by Lubah.

"Pursuant to the SPA, Lubah shall refund Boustead Rimba Nilai Sdn Bhd (BRNSB) in full the deposit, without any accrued interest, amounting to RM3.82 million within 10 business days from August 25 (the date of the notice issued jointly by Lubah and BRNSB),” it said.

Boustead Plantations said the lapse of the agreement would likely not have a material financial impact on its earnings and net asset per share for the financial year ending December 31, 2020.

The acquisition of land measuring a total of 4,915.25 hectares together with a palm oil mill on-site, was entered into by BRNSB, a wholly-owned unit of Boustead Plantations. — Bernama