TSH Resources Bhd has announced plans to expand its oil palm plantation footprint in Indonesia through a series of acquisitions, including related-party transactions.
In a filing with Bursa Malaysia, the group said it has entered into an agreement to acquire Konsep Majureka Sdn Bhd for RM35.03 million from its chairman Datuk Kelvin Tan Aik Pen and former managing director Tan Aik Sim. Kelvin Tan holds a 28.46% stake in TSH Resources, while Tan Aik Sim owns 3.37%.
The acquisition is expected to strengthen TSH’s landbank and support its plan to build a new palm oil mill closer to its estates, helping to reduce transportation costs.
Konsep Majureka holds a 90% stake in PT Katingan Mitra Sejati, which owns plantation land in Central Kalimantan valued at RM41.5 million. The land spans approximately 9,842 hectares, of which 3,512 hectares have been identified as suitable for planting under the initial phase of development.
Separately, TSH said its indirect Indonesian subsidiaries, PT Sarana Prima Multi Niaga and PT Mitra Jaya Cemerlang, have agreed to acquire PT Dinamika Alam Segar (PT DAS) for 5.5 billion rupiah (about RM1.28 million).
PT DAS owns land in Central Kalimantan, with around 787 hectares suitable for oil palm cultivation. The group said this acquisition will enhance operational scale and complement the development of its nearby estates.
TSH noted that the acquisitions will expand its plantation footprint in Indonesia while improving logistics efficiency by shortening the distance for transporting fresh fruit bunches.
While the transactions are not expected to have a material impact on the group’s earnings for the financial year ending Dec 31, 2026, they are anticipated to contribute positively to earnings over the longer term. The deals will also not affect the company’s share capital.
Shares in TSH Resources closed one sen, or 0.7%, lower at RM1.36 on Monday, giving the group a market capitalisation of RM1.74 billion.
