KUCHING: Sarawak Oil Palms Bhd (SOP) is acquiring a property in Pending Industrial Estate here for RM5 million in cash.
Wholly-owned subsidiary SOP Research Services Sdn Bhd (formerly known as SOP Agro Sdn Bhd) has entered into a sale and purchase agreement (SPA) with Pelangi Bumimas Sdn Bhd (the vendor) to acquire a parcel of land together with a double-storey office-cum-workshop measuring approximately 2,713 sq m for RM5 million in a related party transaction.
SOP Research is engaged in the process of oil palm by-products into fertilisers and remediation activities and other waste management services, whereas Pelangi Bumimas is principally engaged in property investment holding.
“The purchase price for the proposed acquisition of the property was arrived at on a willing buyer-willing seller basis after taking into consideration the market valuation report by Messrs CH Williams Talhar Wong & Yeo Sdn Bhd. The valuation report was completed on November 7, 2024,” SOP said in a filing with Bursa Malaysia.
SOP said the proposed acquisition will be funded via internally generated funds and/or a financial institution. The proposed deal is expected to be completed on or before the second quarter of 2025.
According to SOP, there is a title condition for consent to transfer under title condition (v) of the Lease of State Land document of title, of which the vendor will at its own cost make the necessary application for such consent of transfer.
“The vendor shall obtain the transfer consent within four months from the date of this agreement (hereinafter referred to as ‘the prescribed period’). In the event that the vendor is unable to obtain the transfer consent within the prescribed period, the vendor shall automatically grant the purchaser an extension of a further two months from the prescribed period.
“In the event the vendor fails to obtain the transfer consent within the extended prescribed period or if the same is rejected by the appropriate authority, the purchaser has the absolute discretion to rescind or cancel the agreement, and the deposit and any part of the payment made by the purchaser to the vendor shall be refunded within 14 days from the date thereof,” said SOP.
On the rationale for the proposed acquisition, SOP said: “SOP Research had been restructured and its primary businesses in the processing of oil palm by-products into fertilisers and remediation activities and other waste management services will diversify into research and development in oil palms, agricultural sciences, and/or any other related services thereof.
“The proposed acquisition will allow SOP Research to own a permanent building business premises for growing its business, research and development in oil palms, agricultural services, and/or any other related services thereof.”
Currently, the paid-up capital of SOP Research is RM1 million.
