KUALA LUMPUR, March 15 — NPC Resources Bhd’s units have inked a land disposal deal with Sungei Mangis Plantation Sdn Bhd, a wholly owned subsidiary of Tamaco Plantation Sdn Bhd, worth RM165.11 million.
NPC said its wholly owned subsidiaries namely Berkat Setia Sdn Bhd (BSSB), Bonus Indah Sdn Bhd (BISB) and Kian Merculaba Sdn Bhd (KMSB) planned to dispose of a total of 3,037.20 hectares palm oil agriculture land in Sabah.
The proposed disposals are expected to be completed by the third quarter 2024.
NPC said the properties are currently being utilised to cultivate oil palm crops. It contributes 38 per cent of NPC’s net loss before tax and four per cent of the NPC’s total revenue for the financial year ended December 31, 2022.
“In view of the past performance result of the properties, the properties are the least performing contributors to the group,” it said in a filing with Bursa Malaysia.
The proposed disposals will enable NPC to accelerate its planting programme to develop its remaining unplanted plantation land in Indonesia and replanting programme in Sabah.
“Upon maturity, the board expects the plantation land to contribute significantly towards the group’s financial performance.
The proposed disposals will be able to improve the cash flow position of the group,” it said.
The proposed disposals are also expected to derive an estimated one-off loss of approximately RM9.73 million for the NPC Group or approximately RM0.06 per NPC share, before considering the estimated expenses. — Bernama
