KUALA LUMPUR, Hextar Global Bhd (HGB) announced that its indirect subsidiary, PHG Ever Fresh Plantation Sdn Bhd, via its 51 per cent-owned unit Hextar Fruits Sdn Bhd (HFSB), has entered into three separate Sale and Purchase Agreements (SPAs) with Chateau MSK Sdn Bhd for the disposal of three parcels of freehold agricultural land in Raub, Pahang. The parcels, collectively measuring approximately 10.02 hectares, are being sold for a total cash consideration of RM13.75 million.
In a filing with Bursa Malaysia, HGB explained that the land, which has been cultivated as a durian plantation, has not met the group’s anticipated yield levels. The harvest performance has been below expectations, rendering the plantation commercially unviable over the long term.
“The proposed disposal presents an opportunity for PHG to unlock value and realise a favourable return, as the purchaser has offered an attractive price for the land,” the group said.
HGB emphasised that the divestment is aligned with its broader business strategy to rationalise non-performing assets and focus resources on higher-value segments of the durian supply chain. Moving forward, the group intends to strengthen its position in the durian industry by operating collection centres, where durians sourced from various sellers can be aggregated, sorted, and processed.
“These collection centres will allow HGB to focus on sorting and processing durians into pulp, paste, and frozen products for export markets. By shifting its business model towards processing and value-added activities, the group is positioning itself to tap into the growing global demand for Malaysian durians while ensuring greater consistency and scalability of supply,” it said.
The group added that the proposed disposal is expected to be completed within six months from the date of the agreements, subject to the fulfilment of customary conditions precedent. Upon completion, the disposal proceeds are expected to strengthen the group’s financial position, providing additional liquidity for reinvestment into its core operations and future growth initiatives.
