KUALA LUMPUR, Nov 22 (Bernama) – Kumpulan H&L High Tech Bhd's wholly-owned subsidiary, H&L High-Tech Deco Sdn Bhd, has entered into an estate merger agreement with Prosperous Plantation PLT to achieve economies of scale and increase production output.
The merger proposal involves the combination of PPP's planted lots, totalling approximately 182.8 hectares (with an agreed planted area of 163 hectares of palm oil crops) valued at RM871,558 with H&L's existing planted lots, covering around 592.45978 hectares (planted with palm oil crops) in Kampung Nyalau area, Bintulu, Sarawak.
Together, these lots will form the "merged estate".
In a filing with Bursa Malaysia today, Kumpulan H&L said the merger would help increase production output and revenue contribution to the group.
As part of the estate merger agreement, the company has agreed to issue 1.24 million new shares to PPP at an issue price of RM1.00 per share.
This will consist of 373,525 new shares, which will be issued for a cash consideration of RM373,525, and 871,558 new shares, which will be issued for a non-cash consideration, totalling RM871,558.
"The new shares represent 21.5855 per cent of the total enlarged issued share of 5,768,166 ordinary shares in H&L.
"The total enlarged issued share capital will be RM5.76 million," said Kumpulan H&L.
The merger proposal is not expected to have any material effect on the earnings, net assets,gearing, share capital and substantial shareholders' shareholding of the company for the financial year ending Oct 31, 2025.