Dutaland: deal rescinded to avoid prolonged legal tussle

KUALA LUMPUR (Nov 11): DUTALAND BHD [] and IOI CORPORATION BHD [], which mutually rescinded the sale and purchase agreement over the disputed RM830 million oil palm PLANTATION [] deal, had done so with a view not to prolong the legal dispute arising from the termination of the deal.

In a reply to a query from Bursa Malaysia Securities Bhd on Friday, Nov 11, Dutaland said the Deed of Rescission entered by the parties on Nov 9 would avoid protracted litigation, the outcome of which can be uncertain and this may have adverse implications on the company.

“Moreover a prolonged litigation would hinder any potential sales of the PROPERTIES [] in future,” it said.

Dutaland said that by entering into the Deed of Rescission, Sri Mayvin had retracted all its allegations and assertions made against Pertama Land.

It said Pertama Land had consistently maintained that Pertama Land has complied with and is not in breach of the SPA as alleged or at all by Sri Mayvin.

“In the absence of the sale proceeds from the Proposed Disposal, the Group may obtain bank borrowings and/or internally generated funds to fund/support the items stated in the intended utilisation of sale proceeds (i.e. purchase of Irredeemable Convertible Bonds, settlement of debts, funding of Kenny Heights project, etc),” said Dutaland.

To recap, IOI Corp and Dutaland on Nov 9 said they had agreed to mutually rescind the sale and purchase agreement over the disputed RM830 million oil palm plantation deal.

IOI Corp said on Wednesday that its unit Sri Mayvin Plantation Sdn Bhd and Dutaland’s Pertama Land & Development Sdn Bhd had entered into a deed of rescission in a move to resolve all issues and disputes relating to the SPA that involved 11,977.91 ha (29,597.42 acres).

“With immediate effect whereupon the parties are released from all obligations and liabilities in connection with the SPA and neither party shall have any further claim against the other in respect thereto,” it said.

IOI Corp said following from the execution of the deed of rescission, OSK Trustees Bhd, being the stakeholder jointly appointed by the parties, will proceed to refund the deposit earlier paid by Sri Mayvin pursuant to the terms of the SPA together with all interest accrued thereon to Sri Mayvin.

On Oct 25, IOI Corp terminated its proposed acquisition of the land from Dutaland, citing the cancellation was “due to non-compliance of certain terms and conditions”.

However, Dutaland had then said it did not accept the reasons for termination of the sales and purchase agreement and directed the stakeholder, OSK Trustees Bhd not to remit the deposit of RM83 million, which was the 10% deposit paid.

In a separate statement on Nov 9, Dutaland said that with the rescission, Sri Mayvin has retracted all its allegations and assertions made against Pertama Land as contained in Sri Mayvin’s letters dated Oct 4, 20 and the 21.

"Pursuant to the deed, Sri Mayvin has further confirmed that it has not lodged and will not lodge any private caveat(s) or any encumbrances(s) over the properties," it said.

Dutaland also said its board having sought legal advice and after taking into consideration all relevant aspects of the termination of the SPA, was of the view that protracted litigation would hinder any future sales of the properties.

"Furthermore, the outcome of litigation can be uncertain and this may have adverse implications on the group. In the meantime, the group shall continue to manage the properties to generate positive returns," it added.

Updated: IOI Corp, Dutaland rescind RM830m estate deal

KUALA LUMPUR: IOI Corp Bhd and Dutaland Bhd have agreed to mutually rescind the sale and purchase agreement (SPA) over the disputed RM830 million oil palm plantation deal.

IOI Corp said yesterday that its unit Sri Mayvin Plantation Sdn Bhd and Dutaland’s Pertama Land & Development Sdn Bhd had entered into a deed of rescission in a move to resolve all the issues and disputes relating to the SPA.

It added that with immediate effect, the parties are released from all obligations and liabilities in connection with the SPA and neither party shall have any further claim against the other.

IOI Corp said following the execution of the deed of rescission, OSK Trustees Bhd, being the stakeholder jointly appointed by the parties, will proceed to refund the deposit earlier paid by Sri Mayvin pursuant to the terms of the SPA together with all interest accrued thereon.

To recap, on Oct 25, IOI Corp terminated its proposed acquisition of the land from Dutaland, citing the cancellation was “due to non-compliance of certain terms and conditions”.

However, in a separate statement, Dutaland said it did not accept the reasons for termination of the SPA and directed the stakeholder, OSK Trustees Bhd, not to remit the 10% deposit of RM83 million paid.

In a separate statement on Wednesday, Dutaland said that with the rescission, Sri Mayvin has retracted all its allegations and assertions made against Pertama Land as contained in Sri Mayvin’s letters dated Oct 4, 20 and the 21.

"Pursuant to the deed, Sri Mayvin has further confirmed that it has not lodged and will not lodge any private caveat(s) or any encumbrances(s) over the properties," it said.

Dutaland also said its board having sought legal advice and after taking into consideration all relevant aspects of the termination of the SPA, was of the view that protracted litigation would hinder any future sales of the properties.

"Furthermore, the outcome of litigation can be uncertain and this may have adverse implications on the group. In the meantime, the group shall continue to manage the properties to generate positive returns," it added.


This article appeared in The Edge Financial Daily, November 10, 2011.

IOI, Dutaland rescind RM830m land deal

IOI Corporation Bhd and Dutaland Bhd have agreed to mutually rescind the sale and purchase agreement (SPA) for the proposed acquisition of 11,977.91ha of oil palm plantation land for RM830 million.

IOI said its unit Sri Mayvin Plantation Sdn Bhd and Dutaland's Pertama Land and Development Sdn Bhd had entered into a deed of rescission with immediate effect in a move to resolve all issues and disputes relating to the SPA.

"The parties are released from all obligations and liabilities in connection with the SPA and neither party shall have any further claim against the other in respect thereto," it said in a filing to Bursa Malaysia today.

IOI said following from the execution of the deed of rescission, OSK Trustees Bhd, the stakeholder jointly appointed by the parties, will proceed to refund the RM83 million deposit earlier paid by Sri Mayvin together with all interest accrued to Sri Mayvin.

In a separate statement, Dutaland said the rescission is not expected to have a material effect on the earnings, net assets and gearing of the company for the financial year ending June 30, 2012.

Dutaland said it would continue to manage the properties to generate positive returns. -- Bernama

IOI Corp, Dutaland rescind RM830m oil palm estate deal

KUALA LUMPUR (Nov 9): IOI Corp Bhd and DUTALAND BHD [] have agreed to mutually rescind the sale and purchase agreement over the disputed RM830 million oil palm PLANTATION [] deal.

IOI Corp said on Wednesday that its unit Sri Mayvin Plantation Sdn Bhd and Dutaland’s Pertama Land & Development Sdn Bhd had entered into a deed of rescission in a move to resolve all issues and disputes relating to the SPA that involved 11,977.91 ha (29,597.42 acres).

“With immediate effect whereupon the parties are released from all obligations and liabilities in connection with the SPA and neither party shall have any further claim against the other in respect thereto,” it said.

IOI Corp said following from the execution of the deed of rescission, OSK Trustees Bhd, being the stakeholder jointly appointed by the parties, will proceed to refund the deposit earlier paid by Sri Mayvin pursuant to the terms of the SPA together with all interest accrued thereon to Sri Mayvin.

To recap, on Oct 25, IOI Corp terminated its proposed acquisition of the land from Dutaland, citing the cancellation was “due to non-compliance of certain terms and conditions”.

However, in a separate statement, Dutaland said it did not accept the reasons for termination of the sales and purchase agreement and directed the stakeholder, OSK Trustees Bhd not to remit the deposit of RM83 million, which was the 10% deposit paid.

IOI maintains stand on deal turned sour

KUALA LUMPUR: IOI Corp Bhd, which stands to lose an RM83 million deposit to Dutaland Bhd from a deal turned sour, yesterday insisted that the latter had breached their sale and purchase agreement (SPA).

Dutaland, however, maintained that it had not acted in breach of the SPA relating to a piece of plantation land.

IOI previously announced that it had terminated the SPA to buy 11,977.91ha of oil palm plantation land in Sabah from Dutaland for RM830 million.

IOI then said the cancellation was "due to non-compliance of certain terms and conditions".

On July 28 this year, IOI's unit Sri Mayvin Plantation Sdn Bhd had signed the deal with Dutaland's unit Pertama Land and Development Sdn Bhd.

Yesterday in a filing to Bursa Malaysia, IOI maintained that Dutaland, among others, had failed to continue upkeeping and maintaining the properties. It also claimed that there were discrepancies in the particulars relating to the properties, and that Sri Mayvin had communicated the alleged breaches to Pertama Land.

Dutaland, in its latest filing to the stock exchange, said Pertama Land had consistently maintained that it was not in breach of the SPA as alleged.

There had also "been non-compliance on the part of Pertama Land under the SPA as alleged or at all by Sri Mayvin", it added.

Meanwhile, analysts said there will be a minimal impact on IOI's overall earnings if it loses its RM83 million deposit from the deal inked with Dutaland Bhd a few months ago. This is because IOI is a cash-rich company with profits of close to RM2 billion to RM3 billion a year.

Losing the RM83 million deposit on that deal would not make a big difference as the potential loss will only lower its earnings by three to four per cent, said several analysts when contacted by the Business Times yesterday.

"It's too early to say (if the deposit will not be returned) but if they can prove that it is non-compliance, then they should be able to get their money back.

"But if they lose their deposit, then there would be minimal impact on the company as it makes RM2 billion in profits in a year, so it won't hurt much," said one analyst.

It will not be the first time IOI will lose its deposit. In 2008, the company had forfeited its deposit of RM73.4 million after it walked away from buying Menara Citibank.

Analysts, however, said the Citibank and the Dutaland deals cannot be equated, given that the company had decided to walk away from the former deal.

Dutaland earlier said it was seeking legal advice and had notified OSK Trustees Bhd not to remit to Sri Mayvin the deposit of RM83 million being the 10 per cent deposit paid by Sri Mayvin under the SPA and any interest accrued.

Stocks to watch: Ramunia, Hirotako, Faber, Samudra

KUALA LUMPUR: Stocks could give up some of the gains on Friday, Oct 28, ahead of the weekend after chalking up strong gains in the holiday-shortened week.

However, a firmer overnight Wall Street could help continue to underpin investors’ confidence after the deal struck by euro zone leaders on Greece's debt burden.

On Wall Street, stocks surged 3 percent on Thursday as an agreement by European leaders to help contain the region's two-year debt crisis lifted a cloud hovering over markets.

Optimism that a deal would be struck to prevent widespread financial distress fueled the market's rebound in October. The S&P 500 is up more than 13 percent this month, on pace for its biggest monthly gain since October 1974.

But some traders said implementing the agreement will present major challenges, observing that the devil is in the details.

The Dow Jones industrial average was up 339.51 points, or 2.86 percent, at 12,208.55. The Standard & Poor's 500 Index was up 42.59 points, or 3.43 percent, at 1,284.59. The Nasdaq Composite Index was up 87.96 points, or 3.32 percent, at 2,738.63.

Fund buying pushed the FBM KLCI towards a near two-month high, as the 30-stock index closed up 13.13 points or 0.90% to 1,470.93 – the best performance since Sept 2.

The euro and European stocks rallied after European leaders struck a deal to provide debt relief for Greece, but analysts warned the plan would fail to halt the euro zone's two-year-old debt crisis unless crucial details were resolved soon, Reuters reported.

The firmer crude palm oil prices could underpin sentiment in PLANTATION [] stocks while the surge in oil could support rising interest in oil and gas stocks.

Glove manufacturers including Supermax Bhd could see continued interest as it benefits from the falling latex prices.

IOI Corp and Dutaland could also see heavy trading interest following the on-going dispute over IOI’s decision to terminate the agreement to acquire plantation land from Dutaland for RM830 million.

Among the other stocks to watch are Ramunia after its unit was awarded a contract from Petrofac (Malaysia PM-304) Ltd to supply driven piles for the Cendor phase 2 development project.

The contract value is RM13.13 million and the duration of the contract is 23 weeks. Ramunia expects the contract to contribute positively towards the earnings for the financial period 2011-2012.

Auto parts manufacturer MBM RESOURCES BHD [] has made a takeover offer for HIROTAKO HOLDINGS BHD [], which makes car safety restraint equipment, offering 97 per share, which is nine sen above the pre-suspension price of 88 sen.

Hirotako said it had received a notice of conditional take-over offer from AmInvestment Bank Bhd on behalf of MBM Resources.

MBM Resources was offering 97 per share for all the voting shares of 25 sen each in Hirotako and 5.0 sen per warrant.

The federal government has extended FABER GROUP BHD []’s hospital support services concession for an interim period of six months, starting Friday, Oct 28.

Its unit Faber Medi-Servce Sdn Bhd had received a letter from the Public Private Partnership Unit of the Prime Minister's Department about the extension of the contract.

Faber said the extension was subject to the prevailing terms and conditions of the concession or until the signing of a new concession agreement for the privatisation of services with the Health Ministry, whichever is the earlier.

Bursa Malaysia Securities Bhd rejected KEJURUTERAAN SAMUDRA TIMUR BHD []’s application for more time to submit its audited statements for the financial year ended June 30, 2011.

The company said Bursa had informed it of the rejection in a letter on dated Thursday, Oct 27.

KLCI closes at near 2-month high of 1,470

KUALA LUMPUR: The deal struck by euro zone leaders on Greece's debt burden energized regional markets on Thursday, Oct 27, as fund buying pushed the FBM KLCI towards a near two-month high.

The KLCI closed up 13.13 points or 0.90% to 1,470.93 – the best performance since Sept 2 -- after a strong start in the morning. Trading volume was heavier with 1.88 billion shares changing hands at RM2.313 billion.

The broader market was firm, with gainers leading losers 689 to 165 and 195 counters unchanged.

Commodities also rallied, with US light crude oil surging US$2.18 to US$92.38. Crude palm oil futures for third-month delivery rose RM29 to RM2,980 per tonne. The ringgit was firmer at 3.1092 to the US dollar.

The upbeat mood was also seen in key regional markets. Hong Kong's Hang Seng rallied 3.26% to 19,688.70, Singapore's Straits Index advanced 2.89% to 2,849.90, Japan’s Nikkei 225 2.04% to 8,926.54, South Korea's Kospi 1.46% to 1,922.04 and Shanghai's Composite Index 0.34% at 2,435.61.

Reuters reported the euro and stocks rallied after European leaders struck a deal to provide debt relief for Greece, but analysts warned the plan would fail to halt the euro zone's two-year-old debt crisis unless crucial details were resolved soon.

Governments announced an agreement under which private banks and insurers would accept 50 percent losses on their Greek debt holdings in the latest bid to reduce Athens' massive debt load to sustainable levels. The deal also foresees a recapitalisation of hard-hit European banks and a leveraging of the bloc's rescue fund, the European Financial Stability Facility (EFSF), to give it firepower of 1.0 trillion euros (US$1.4 trillion).

At Bursa Malaysia, the star performers which pushed the KLCI were Genting, IOI Corp, Public Bank, Gamuda and Petronas Chemicals (PetChem).

Genting rose 31 sen to RM10.30, giving the 30-stock index a 2.65 point push while Public Bank gains 14 sen to RM12.62 and Gamuda 20 sen to RM3.37, adding a combined 2.8 points.

IOI Corp rose 16 sen to RM5.26, adding 2.38 points to the index, after it cancelled the RM830 million land purchase deal with Dutaland. Dutaland fell seven sen to 54 sen and the warrants three sen to 10 sen.

Tenaga rose five sen to RM5.83, HLBank 22 sen to RM10.58, Gamuda 20 sen to RM3.37 and PetChem 12 sen to RM6.31.

Supermax added 30 sen to RM3.56. CIMB Investment Bank Bhd said that the less volatile natural rubber latex prices will lead to earnings re-rating for Supermax as a result of better margins and higher demand. The stable costs would enable the group to pass on a higher portion of its costs on to customers, regaining lost profits when raw material costs increased.

Among actively traded counters were Hibiscus, up two sen to 69.5 sen while Hibiscus-WA rose three sen to 32 sen. The securities resumed trading on Thursday after announcing the deal to acquire a 35% stake in Lime Petroleum Ltd for US$55 million.

Market Commentary

The FBM KLCI index gained 13.13 points or 0.90% on Thursday. The Finance Index increased 1.10% to 13291.33 points, the Properties Index up 2.60% to 962.46 points and the Plantation Index rose 1.43% to 7492.46 points. The market traded within a range of 14.29 points between an intra-day high of 1474.27 and a low of 1459.98 during the session.

Actively traded stocks include MBFHLDG-WA, SAAG, HIBISCS-WA, HARVEST-WA, HARVEST, DUTALND, DUTALND-WA, UEMLAND, TIGER and TMS. Trading volume increased to 1877.17 mil shares worth RM2413.17 mil as compared to Tuesday’s 950.64 mil shares worth RM1075.97 mil.

Leading Movers were GENTING (+31 sen to RM10.30), IOICORP (+16 sen to RM5.26), PBBANK (+14 sen to RM12.62), GAMUDA (+20 sen to RM3.37) and PCHEM (+12 sen to RM6.31). Lagging Movers were GENM (-4 sen to RM3.73), MAXIS (-3 sen to RM5.29), PLUS (-2 sen to RM4.39), DIGI (-2 sen to RM31.60) and KLK (-2 sen to RM20.60). Market breadth was positive with 689 gainers as compared to 165 losers. -- JF Apex Securities Bhd

KL shares sharply higher at midday

Share prices ended the morning session higher today in line with the positive movement on regional markets as investors took fresh leads following progress on the eurozone debt plan, dealers said.

At 12.30pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 15.01 points to 1,472.81, after opening 3.75 points higher at 1,461.55.

The benchmark index moved between a high of 1,473.20 and fell to a low of 1,459.98.

Dealers said investors took cue from the decision by European leaders for a 50 per cent haircut by private sector investors in Greek bonds and boosted the firepower of the eurozone rescue fund to US$1.4 trillion.

"This gives some hope to players as the Greek Prime Minister also said Greece would able to return to the bond markets sooner than 2021, the year in which it is expected to do so, by the International Monetary Fund," a dealer said.

The Finance Index rose 124.61 points to 13,271.75, the Industrial Index added 21.69 points to 2,706.71 and the Plantation Index advanced 98.15 points to 7,484.71.

The FBM Emas gained 112.109 points to 10,040.30, the FBMT100 increased 110.37 points to 9,861.43 and the FBM Ace Index added 29.75 points to 4,003.44, while the FBM 70 Index increased 161.41 points to 10,820.09.

Advancers led decliners by 489 to 189 while 234 counters were unchanged, 594 untraded and 26 others suspended.

Trading was firmer with a total volume of 984.32 million shares worth RM1.073 billion.

Of the active counters, Dutaland fell 6.5 sen to 54.5 sen, The Media Shoppe was flat at 9.5 sen, UEM Land rose 12 sen to RM2.11 and SAAG Consolidated earned half-a-sen to seven sen.

Among heavyweights, Maybank and CIMB added two sen each to RM8.29 and RM7.28 respectively, Sime Darby was flat at RM8.85 and Petronas Chemicals earned 10 sen to RM6.29. - Bernama

Markets up on EU plan to contain euro zone crisis

KUALA LUMPUR: Asian markets rallied on Thursday, Oct 27 after euro zone leaders struck a deal to contain the euro crisis, with the key indices up between 1% and 1.7%.

At 12.30pm, the FBM KLCI was up 14.86 points or 1.02% to 1,472.66. Turnover was 984.32 million shares valued at RM1.07 billion. There were 489 gainers, 149 losers and 234 stocks unchanged.

Japan’s Nikkei 225 rose 1.7% to 8,896.92, Hong Kong’s Hang Seng Index added 1.74% to 19,399.03, South Korea’s Kospi 1.31% to 1,919.16 and Singapore’s Straits Times Index advanced 1.7% to 2,817.10.

Reuters reported euro zone leaders struck a deal with private banks and insurers to accept a 50% haircut on their Greek government bonds under a plan to lower Greece's debt burden and try to contain the two-year-old euro zone crisis.

Under the deal, the private sector agreed to voluntarily accept a nominal 50% cut in its bond investments to reduce Greece's debt burden by 100 billion euros, cutting its debts to 120% of GDP by 2020, from 160% now.

Crude palm oil third-month futures rose RM39 to RM2,990 per tonne while Brent jumped US$1, or 0.9%, to US$109.91 a barrel and U.S. oil added US$1.56, or 1.7%, to US$91.76 a barrel.

At Bursa Malaysia, IOI Corp rose 18 sen to RM5.28 after it cancelled its RM830 million land purchase deal with Dutaland.

Dutaland fell 6.5 sen to 54.5 sen with 30.34 million shares done while Dutaland-WA lost three sen to 10 sen with 22.74 units done.

Hibiscus-WA rose 1.5 sen to 30.6 sen while the shares added 1.5 sen to 69 sen after its decision to buy a stake in Lime Petroleum Ltd for a total of US$55 million.

MBM Resources rose two sen to RM3.09 on a possibility it might buy a stake in Hirotako.

Among the major gainers in the morning session was Supermax, after analysts upgraded its outlook. It rose 36 sen to RM3.62. BLD PLANTATION []s was the top gainer, up 57 sen to RM6.90.

Among index-linked stocks. BAT added 40 sen to RM45.30, RHB Cap 35 sen to RM7.70, HLFG 30 sen to RM11.78, Genting 27 sen to RM10.26 while MISC rose 19 sen to RM6.99, Tenaga and HL Bank 18 sen each to RM5.96 and RM10.54.

Among the decliners were Ewein, down 22 sen to 86 sen, JFTech 17 sen to 13 sen, Ibraco and Lafarge 13 sen each to RM1.20 and RM6.99.

Dutaland falls most in 28 months

Dutaland Bhd, a Malaysian plantation and property group, dropped the most in 28 months in Kuala Lumpur trading after IOI Corp scrapped an agreement to buy the company’s oil palm land for RM830 million.

The stock slid 11 percent to 54 sen at 9:01 a.m. local time, set for its steepest decline since June 18, 2009. -- Bloomberg

Dutaland falls after IOI ends RM830m land deal

KUALA LUMPUR: Shares of DUTALAND BHD [] fell at the start of trade on Thursday, Oct 27 as investors reacted negatively to IOI Corp’s decision to terminate the RM830 million land purchase deal.

At 9am, Dutaland was down 6.5 sen to 54.5 sen. There were 1.32 million shares done.

The FBM KLCI rose 3.75 points to 1,461.55. Turnover was 15.28 million shares valued at RM15.36 million. There were 77 gainers, 27 losers and 52 stocks unchanged.

On Tuesday, IOI Corp announced it terminated its proposed acquisition of 11,977.91 ha (29,597.42 acres) of oil palm PLANTATION [] land from Dutaland, citing “non-compliance of certain terms and conditions”.

However, Dutaland has rejected the reasons for the termination.

ECM Libra Research said that as Dutaland does not accept the termination, a legal suit may ensue.

“Dutaland was expected to make a profit of RM511 million from the sale of the land and they may seek a specific performance relief from the court for the transaction to be completed,” it said.

The research house said at the price of RM69,294 a hectare, many considered the purchase to be a pricey one. As such, some fractions of the market would perceive this to be a positive development.

ECM Libra Research said although the termination of the SPA is a setback to IOI’s plan to increase its fresh fruit bunches, it may allow the group to look for better opportunities elsewhere. However, this issue between IOI and Dutaland will have to be resolved first.

Stocks to watch: Dutaland, IOI Corp, Hibiscus, timber stocks

KUALA LUMPUR: The outcome of the on-going European Union summit on Wednesday, Oct 26 and whether it can hammer out a convincing plan to tackle the region’s debt crisis will decide the direction of the markets on Thursday.

Reuters reported prospects for a comprehensive deal to resolve the crisis at the summit looked dim, with deep disagreements on critical aspects, including how to give the region's bailout fund greater firepower.

At Bursa Malaysia, the FBM KLCI could give up some of the late gains on Tuesday when it reopens for trading on Thursday, unless there is a strong positive plan to resolve the crisis.

Among the stocks to watch are DUTALAND BHD [], IOI CORPORATION BHD [], Hibiscus Petroleum Bhd and timber stocks.

IOI Corporation Bhd announced on Tuesday it 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, the cancellation was “due to non-compliance of certain terms and conditions”. However, Dutaland has rejected the reasons for the termination.

Hibiscus resumes trading on Thursday, after its suspension on Tuesday to acquire a 35% equity stake in Lime Petroleum Ltd for a total of US$55 million.

The Lime Group is principally involved in the exploration and production activities in the oil and gas industry in the Middle East region.

Hibiscus said Lime Group’s assets are located in the Middle East, where extensive oil & gas infrastructure has been developed. It also said Lime Group’s assets are located in an area where several other oil and gas companies with significant financial and technical resources operate.

“These other companies include major integrated oil and natural gas producers and numerous other independent oil and natural gas companies and individual producers and operators. In the event that Lime Group has a successful exploration campaign, the assets could attract interest from these other companies as acquisition targets and/or for partnerships,” it said.

Timber stocks could be in focus after the Netherland’s appeals panel has rejected the Malaysian Timber Certification Council’s (MTCC) appeal against a 2010 decision by Dutch timber procurement body TPAC.

According to the Timber Industry magazine, the panel found that the Malaysian Timber Certification Scheme (MTCS) had not met the Netherland’s procurement criteria for wood.

Malaysia Airports Holdings Bhd (MAHB) could continue to see trading interest after its earnings rose 74.1% to RM108.18 million in the third quarter ended Sept 30, 2011 from RM62.11 million a year ago,.

Year to date, the group's profits rose 42.7% to RM278.23 million from RM194.87 million. Revenue rose 16.4% on-year from RM1.65 billion to RM1.92 billion.

GLOBETRONICS TECHNOLOGY [] BHD []’s earnings fell 10.6% to RM7.73 million in the third quarter ended Sept 30, 2011 from RM8.65 million a year ago following a decline in revenue.

Revenue declined 7.4% to RM70.72 million from RM76.38. Earnings per share were 2.91 sen compared with 3.27 sen.

Dutaland rejects IOI Corp bid to cancel RM830m land purchase

KUALA LUMPUR: IOI CORPORATION BHD []'s move to terminate its proposed acquisition of 11,977.91 ha (29,597.42 acres) of oil palm PLANTATION [] land from DUTALAND BHD [] for RM830 million has been rejected by the latter.

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

However, in a separate statement, Dutaland said it did not accept the reasons for termination of the sales and purchase agreement and directed the stakeholder, OSK Trustees Bhd not to remit the deposit of RM83 million, which was the 10% deposit paid.

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.

However, Dutaland said on it was taking legal advice over the notice relating to the alleged non-compliance of certain obligations by Pertama Land.

“The company is taking legal advice and has duly notified Sri Mayvin today that the company does not accept Sri Mayvin’s reasons for termination of the SPA.

“Accordingly, the company has notified the Stakeholder, OSK Trustees Bhd not to remit to Sri Mayvin the deposit of RM83 million being the 10% deposit paid by Sri Mayvin under the SPA and any interest accrued thereon,” it said.

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.