KUALA LUMPUR: TSH Resources Bhd has proposed to dispose of two oil palm estates spanning a total of 7, 431 acres and one palm oil mill in Sabah to Sharikat Keratong Sdn Bhd for a total cash consideration of RM248mil.

       The group and its wholly owned subsidiaries, TSH Palm Products Sdn Bhd (TSHPP) and TSH Plantation Sdn Bhd (TSHP), have inked three separate sale and purchase agreements with Sharikat Keratong Sdn Bhd yesterday, it told Bursa Malaysia.

       “The cash generated will enable the TSH group to pare down its existing borrowings. As at Dec 31, 2020, the net borrowings of the group was RM1.13bil and net gearing was 0.71 times. “The proforma effect of the proposed disposal on the net gearing assuming the proposed disposal were completed on Dec 31, 2020 would have been a reduced net gearing of 0.53 times, ” it added.

       The group plans to utilise the RM231.5mil cash generated by the disposal to repay bank borrowings within 24 months.