KFIMA ... Nov10

It is looking to acquiring an 80% stake in Victoria Square Plantation Sdn Bhd (VSP) from Network Jaya Bhd for RM21 million cash.

The acquisition will enable KFima to participate in developing a 5,000ha oil-palm plantation in Sarawak with the Sarawak Foundation’s board of trustees and Amanah Khairat Yayasan Budaya Melayu Sarawak.

It would satisfy the purchase price using internally generated funds and/or external borrowings.

VSP’s 65%-owned unit Amgreen Gain Sdn Bhd has formed a joint venture with the Sarawak Foundation’s board of trustees and Amanah Khairat Yayasan Budaya Melayu Sarawak to jointly develop the land in Baram, Sarawak.

Amgreen has been granted a provisional 60-year lease of the land that expires on Aug 12, 2069. Amgreen’s latest financial statements for FY2009 ended Oct 31 showed that the net book value of the Baram land was RM4.25 million.

The cost of developing the land into an oil-palm plantation is estimated at RM70 million over the next five years.

KFima’s main activities are in manufacturing, bulking, plantation, canning, property investment and food-packaging.