Malaysia’s United Malacca to divest plantation land for $42.3 mln

Malaysian oil palm cultivation company United Malacca Bhd. has entered into three agreements to divest several pieces of plantation land in Melaka and Negeri Sembilan for 175.15 million Malaysian ringgit ($42.3 million).

United Malacca entered into a conditional sale and purchase agreement with Huat Lai Broiler Breeders Sdn Bhd for the divestment of 568.09 hectares of land for $23.3 million.

The company also agreed with HLRB Broiler Farm Sdn Bhd to sell two lots of land with a total land area of about 298.91 hectares in Tampin, Negeri Sembilan for $12.4 million. Further, HLRB Processing Sdn Bhd proposed will buy three lots of land with a total land area of 154.06 hectares in Rembau, Negeri Sembilan for $6.4 million.

United Malacca will use the money from the deal for the development of other remaining estates in Malaysia and Indonesia, as well as for general working capital.