KUCHING: Rimbunan Sawit Bhd is to sell an oil palm plantation in Baram, Miri Division for RM28 million cash.
Wholly-owned subsidiary Sastat Holdings Sdn Bhd had entered into a conditional sale and purchase agreement with Trinity Capital Resources Sdn Bhd for the disposal of 1,504-hectare land grown with oil palms (Sastat Estate) along Batang Baram, Rimbunan Sawit said in a filing with Bursa Malaysia.
Sastat Holdings is principally involved in oil palm plantation while Trinity Capital is engaged in growing oil palm estate and activities of holding companies.
Sastat Estate has a planted area of 1,055.45 hectares, and the oil palm trees are aged between nine and 13 years. The prime matured palms cover 940.52 hectares and young palm (4-10 years) 114.93 hectares.
In 2023 and 2024, Sastat Estate produced 9,133 tonnes and 7,879 tonnes of fresh fruit bunches (FFB) respectively, and in 2025, the production was 7,281 tonnes up to September 30. In 2023 and 2024, Sastat Estate incurred net loss of
RM329,773 and RM1.92 million respectively, and in the first nine months of 2025,the loss amounted to nearly RM1.32 million.
The original cost of investment by Sastat Holdings in the estate was about RM30.77 million in August 2028. The proposed disposal is expected to be completed by second half of 2026.
According to Rimbunan Sawit, Sastat Holdings and Trinity Capital had agreed to purchase the Sastat Estate on an “as is where is” basis and free from all claims and encumbrances.
“The disposal consideration was arrived at on a willing-buyer willing-seller basis and after taking into consideration (a) the market value of Sastat Estate of RM29 million as appraised by independent valuer Henry Butcher Malaysia (Sarawak) Sdn Bhd in its valuation report dated December 2, 2025; and the rationale for the proposed disposal which is to enable Rimbunan Sawit to discontinue incurring high transportation costs as the Sastat Estate is located on the remote location which lacks integration with other existing estates and mills within the group.
It is also to avoid Rimbunan Sawit from making further investment into Sastat Estate to render it profitable. The proposal disposal will in turn, allow Rimbunan Sawit to concentrate resources on more profitable and better integrated estates and mills, thereby enhancing overall efficiency.
Rimbunan Sawit intends to utilise the proceeds from the disposal for working capital requirements, and for investment and development of viable potential estate within 12 months.
In the first nine months of financial year 2025, Rimbunan Sawit posted lower group net profit of RM6.68 million, down from RM26.58 million in the same period in 2024 despite a sharp increase in revenue to RM473.6 million from RM355.8 million year-on-year.
