PETALING JAYA: Puncak Niaga Holdings Bhd, which sold its water concession business to the Selangor state government last year, is going into the palm oil business in Sarawak.

The company told Bursa Malaysia yesterday that a 60%-owned unit - Danau Semesta Sdn Bhd - had entered into a sale and purchase agreement with Shin Yang Holding Sdn Bhd to acquire its plantation company Danum Sinar Sdn Bhd for RM446.5mil cash.

Danum Sinar has a total of 46,674 ha of plantation land in Murum, Sarawak.

“The proposed acquisition presents an opportunity, being both attractive strategically (given the sizeable land bank under one title) and financially to Puncak Niaga to venture into the oil palm plantation sector,” the company said. As Puncak Niaga’s effective equity interest in Danau Semesta is 60%, the portion of the purchase price that it has to contribute is RM267.9mil. The company said this would be funded via a combination of internally generated funds and bank borrowings.

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