KUALA LUMPUR, Jan 12 — Plantation company Harn Len Corp Bhd has entered into a conditional share sale agreement (CSSA) with Datuk Mohamed Nizam Mohamed Jakel, who is the group chief operating officer of Jakel Group, to buy 100 per cent equity interest in Amal Resources Sdn Bhd (ARSB) for RM54.715 million.

Harn Len chief operating officer Kelvin Low Yew Yern said RM21.9 million, representing 40 per cent of the purchase price, will be funded via the issuance and allotment of 31.3 million new ordinary shares of Harn Len at an issue price of RM0.70 per share while the remaining 60 per cent of the amount will be paid in cash.

He said upon the completion of the acquisition, Mohamed Nizam will become one of the substantial shareholders of Harn Len, holding 5.5 per cent of the shares.

"The purpose of this acquisition is (for) the injection of the oil palm plantation which (gives us) an opportunity to diversify our plantation business away from oil palm to other crops,” he told the media after a signing ceremony for the deal.

"ARSB owns 100 per cent equity interest in Pahang Coconut Valley Corporation Sdn Bhd (PCVCSB) which owns the rights to a 60-year lease of plantation land in Rompin, Pahang,” he said.

"This helps grow Harn Len’s land bank from 42,724.5 acres (17,289 hectares) to 46,777.1 acres (18,927 hectares),” he added.

The plantation land in Rompin is currently planted with pineapple and oil palm.

The Jakel Group is involved in textile retailing, manufacturing and property development.

Harn Len is mainly engaged in oil palm plantation, palm oil mill operation and property investment. The palm oil business continues to be the main business of the group, contributing nearly 99 per cent of the group’s revenue. — Bernama