Kuala Lumpur Kepong Bhd (KLK) stated that it has completed the purchase of a 56.2% stake in IJM Plantations Bhd from IJM Corp Bhd.
After IJM Corp accepted the offer on June 11, KLK acquired a 56.2% stake at RM3.10 per share for RM1.53 billion.
Currently, IJM Plantations has an area of 61,277 hectares throughout Sabah and Kalimantan and KLK has an area of 213,411 hectares at the end of September 2020.
However, after the acquisition was signed, the total area under KLK oil palm cultivation continued to jump 28.7% to 274,688 hectares.
KLK chief executive officer Tan Sri Lee Oi Hian said the acquisition was in line with the group's long -term strategic move to further expand its plantation business.
He added that KLK continues to find ways to increase operational efficiency in order to reduce production costs.
As at 11.20am, IJM Plantations' share price had declined by about 0.32% to RM3.08 in today's trading session with a market capitalization of RM2.71 billion.
Meanwhile, KLK's share price at 11.30am recorded an increase of 0.96% to RM21.0 with a market capitalization of RM22.66 billion.
