KUALA LUMPUR: Harn Len Corp Bhd is acquiring 100 per cent equity interest in Almal Resources Sdn Bhd (ARSB) from Datuk Mohamed Nizam Mohamed Jakel for RM54.72 million.

In a statement today, Harn Len said the purchase consideration would be satisfied via the issuance and allotment of 31.27 million new shares of the company and a cash consideration of RM32.83 million.

The resolution was voted for and duly carried out during the company’s extraordinary general meeting (EGM) today.

Harn Len said after the acquisition, Mohamed Nizam would become one of its major shareholders with a 5.5 per cent stake.

Mohamed Nizam is a businessman involved in the day-to-day operations of his family business, the Jakel Group of Companies, which is engaged in textile retailing and manufacturing as well as property development.

“The ARSB acquisition provides the company with an opportunity to diversify its plantation business away from oil palm to other crops.

“At the same time, ARSB and its subsidiary Pahang Coconut Valley Corp Sdn Bhd (PCVCSB) will become Harn Len’s wholly-owned subsidiary, which in turn, own the rights to a 60-year lease of plantation land in Rompin, Pahang,” it said.

For the total land area of 1,639.37 hectares, Har Len estimates a plantable area of approximately 1,618.74 hectares (ha), while the remaining 20.23ha shall be used for infrastructure purposes.

As of March 10, 2023, PCVCSB had planted 121.41ha of palm oil and 214.48ha of pineapple.

Harn Len chief operating officer Low Yew Yern said the pineapple plantation could generate faster revenue for the group and reduce reliance on oil palm plantations.

“The group intends to utilise up to 404.69ha of the land for pineapple plantation subject to further feasibility assessment to be conducted.

“We expect to commence pineapple planting within six months after the completion of the proposed ARSB acquisition,” Low said. – Bernama