Harn Len Corp has received approval after the EGM on the proposed acquisition of 100% equity interest in ARSB from Datuk Nizam for a total consideration of RM54.7 million which the group satisfied via cash consideration of RM32,829,300 and issuance of 31,266,000 new ordinary shares in the company.
After the acquisition, Datuk Nizam will become one of the major shareholders of Harn Len with a 5.5% stake. At the same time, ARSB and its subsidiary Pahang Coconut Valley Corporation Sdn Bhd will become wholly-owned subsidiaries of the group, which in turn it owns the rights to a 60-year lease of plantation land in Mukim Rompin, Pahang.
For the total land area of 4050.96 acres, HARNLEN estimates a plantable area of approximately 4,000 acres while the remaining 50 acres shall be used for infrastructure purposes. As of March 10, PCVCSB had planted 300 acres of palm oil and 530 acres of pineapple.
Harn Len Chief Operating Officer Kelvin Low Yew Yern believes the pineapple plantation could generate faster revenue for the group and reduce reliance on oil palm plantations. The Group intends to utilise up to 1,000 acres of the Land for pineapple
plantation subject to further feasibility assessment to be conducted. “We expect to commence the pineapple planting within 6 months after the completion of the Proposed ARSB Acquisition.”
