Would shareholders be better off if TH Plantations sell its assets like Boustead Plantation?

TH Plantations has about 55,000 of planted land compared to Boustead Plantations which has about 70,000 ha.

The shareholders of Boustead have decided that they can derive better value if it was part of KLK rather than operate it on their own.

If you compare the ROE of KLK (shown in green in the chart) over the past 9 years with those of BPlant (shown in black), you can see the economic rational. Refer here for chart. https://i.postimg.cc/63zsdSZG/TH-vs-Boustead.png

When you look at TH ROE over the same period (shown in blue), it is worse than that of BPlant.

I know TH has its Transformation plan to turn deliver better returns. But wouldn’t it be easier for TH to take the BPlant route and then put the money into better use?

The plantation sector seems to be dependent on size. Look at Sime Plantations and IOI and you will know what I mean. For more insights into the Bursa plantation sector, go to https://www.i4value.asia/2021/08/how-malaysian-plantation-sector.html#more