Property News

TSH Resources’ Kalimantan land disposal downsized to RM447m

KUALA LUMPUR (Aug 8): TSH Resources Bhd’s (KL:TSH) land sales, which would have fetched roughly 2.43 trillion Indonesian rupiah (RM731.09 million), in North Kalimantan have been downsized to RM447.17 million.
The plantation group announced to the stock exchange that its plan to sell the remainder of three land plots in North Kalimantan did not materialise, due to the non-fulfilment of a condition precedent. 
According to TSH, the buyers, PT Kalimantan Industrial Park Indonesia (KIPI) and PT Kawasan Industri Kalimantan Indonesia (KIKI), failed to meet a key condition, which is signing the “minutes of clean and clear” by the agreed deadline with the seller — TSH’s 90%-owned unit PT Bulungan Citra Agro Persada (BCAP).
The parties were also unable to agree on an alternative within the 30-day grace period.
BCAP will refund the down payment of 59.21 billion rupiah (RM17.82 million) to the buyers, TSH said in the bourse filing.
So far, the group has received 1.47 trillion rupiah (RM441.44 million) from the overall disposal.
“The management views the termination of the said HGUs (land with right to cultivate certificates) positively, as 3,333 hectares out of the total 5,397.53 hectares of the said HGUs have already been planted with oil palms, and are yielding an average of more than 22 metric tons per hectare,” TSH said.
As of March 31, the palms had an average age of 12 years, it added, indicating strong future production and profitability.
Initially proposed in December 2021, BCAP had signed a heads of agreement to sell a total of eight parcels of land comprising 13.21 hectares of oil palm plantations, 683.36 hectares of adjoining uncertified land, and additional plots of uncertified land to KIKI and KIPI for 2.31 trillion rupiah.
The deal was revised to 2.43 trillion rupiah as more details were ironed out, including the size of the uncertified land plots at 683.36 ha, and the status conversion of certain plots of the land involved in the deal.
The deal is considered as a related party transaction, as BCAP director Raden Harry Zulnardy holds a direct 0.01% equity interest and an indirect 99.99% interest in KIKI through PT Kawasan Industri Hijau Indonesia. He also indirectly owns 90.09% of KIPI through PT Kawasan Industri Kalimantan Asri.
Meanwhile, Garibaldi Thohir, who holds a 10% stake in BCAP, is also the president director of PT Adaro Energy Tbk, which indirectly owns 9.91% of KIPI.
The two individuals, however, do not own shares in TSH.
Shares in TSH fell by one sen to close at RM1.11 on Thursday, giving the company a market value of RM1.53 billion. The counter is up 13.85% this year.
Looking to buy a home? Sign up for EdgeProp START and get exclusive rewards and vouchers for ANY home purchase in Malaysia (primary or subsale)!

Source: EdgeProp.my