Tuesday, October 25, 2011

IOI Corp cancels RM830m land purchase from Dutaland

KUALA LUMPUR: IOI CORPORATION BHD [] has terminated its proposed acquisition of 11,977.91 ha (29,597.42 acres) of oil palm PLANTATION [] land from DUTALAND BHD [] for RM830 million.

IOI Corp said on Tuesday, Oct 25 the cancellation was “due to non-compliance of certain terms and conditions”.

To recap, on July 28, IOI Corp’s unit Sri Mayvin Plantation Sdn Bhd had signed a sale and purchase agreement with Dutaland’s unit Pertama Land & Development Sdn Bhd for the land.

The rationale then was that the proposed acquisition would increase IOI group’s plantation land-bank by 11,977.91 ha or 6.69% from its present 178,884 ha to 190,862 ha in Malaysia.

IOI Corp had then said the total planted area of the plantation land was about 10,449 ha of which about 85% of the estate is at its prime with oil palm trees ranging between three years to 15 years. The plantation land was also adjacent to the group’s Mayvin estates.

However on Tuesday, Sri Mayvin issued a notice to Pertama Land to terminate the agreement due to non-compliance of certain terms and conditions which had been communicated to Pertama Land.

“Under the provision of the SPA the rights and obligations of the parties shall lapse and be of no further effect from the date of termination notice,” it said.

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