Home > Uncategorized > KL Kepong expands into Papua New Guinea

KL Kepong expands into Papua New Guinea

KUALA LUMPUR: Ipoh-based Kuala Lumpur Kepong Bhd (KLK) is venturing into Papua New Guinea to plant oil palms.

In its filing to Bursa Malaysia yesterday, the group said it is planning to buy a company that has leasehold rights over 44,342 hectares of agriculture land there.

KLK is expected to pay US$8.7 million (or RM27 million) to Hii Eii Sing, a Malaysian national, to secure 51 per cent control of Collingwood Plantations Pte Ltd.

KLK has so far planted up around 205,000ha in Malaysia and Indonesia. The plantation business make up some 75 per cent of the group’s profits.

When contacted yesterday, KLK plantations director Roy Lim Kiam Chye said: “It’s a greenfield venture. If and when this deal completes in the first quarter of 2013, it’ll bump up our plantation landbank by 20 per cent to around 290,000ha.”

Advertisements
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: