DPS ... May 2008

It has proposed to acquire plantation company Biotrend Asia (M) Sdn Bhd (BTA) from several vendors for RM11.5 million.

BTA had obtained the consent from Yayasan Kelantan Darulnaim (Yakin) to carry out an oil palm plantation project covering an area of 4,600 hectares of government land in Kuala Krai, Kelantan.

BTA would be allowed to plant oil palm on the land for 66 years with an option to renew for another 33 years by paying Yakin the prescribed quit rent starting after the expiry of five years from the date of the sub-lease agreement to be signed between Yakin and BTA.

The proceeds from the oil palm plantation would belong solely to BTA. The acquisition would allow it to carry out its business in agro-based industries on a larger scale. The planting was expected to start about six to 12 months after the signing of the sub-lease agreement.