Kuala Terengganu, 25 March 2022 – TDM Berhad ("TDM" or "the Group") wishes to announce that it had, on 21 March 2022, accepted an offer by Ikhasas Sdn Bhd. ("Purchaser" or "Ikhasas") on the sale of PT Rafi Kamajaya Abadi (RKA) and PT Sawit Rezki Abadi (SRA) for an aggregate cash consideration of RM115,000,000.00 ("Offer") ("Proposed Disposal"), including an earnest deposit of RM2,300,000.00. The Offer shall be conditional upon TDM and Ikhasas fulfilling certain agreed specific conditions within six (6) months from the date of TDM's acceptance of the Offer or such longer period as may be agreed between the parties. TDM shall negotiate exclusively with the Purchaser regarding the Proposed Disposal within this period or to such later date as both parties mutually agreed.
RKA and SRA were incorporated in 2007 and 2011, respectively, under the laws of the Republic of Indonesia with principal activities in the cultivation of oil palms, trading of palm oil and other related products. RKA has been loss-making since its first year of production, while SRA has not commenced any operations since its acquisition by the Group in 2015. Both companies are not expected to be profitable in the near term.
TDM has already impaired the investment of its Indonesian assets since the financial year of 2017 (FY2017), amounting to RM729 million. The Indonesian subsidiaries of the Group have also been classified as assets held for sale since FY2019.
The Offer made by Ikhasas, a Malaysian private limited company with principal activities involving investment in the palm oil business and trading and exporting of palm products, for the assets will allow TDM to consolidate its business activities and refocus its energy and resources to viable ventures more effectively without the need to be dragged by legacy issues.
