Rimbunan Sawit to sell Sastat Estate in Miri for RM28 mln

KUCHING (Jan 14): Rimbunan Sawit Bhd (RSB) will sell its 1,504-hectare oil palm plantation, Sastat Estate, in Batang Baram, Miri, for RM28 million in cash.

In a Bursa filing on Wednesday, the Sarawak-based oil palm planter said the estate, held through its wholly owned subsidiary Sastat Holdings Sdn Bhd (SHSB) will be sold to Trinity Capital Resources Sdn Bhd (TRCSB) under a conditional sale and purchase agreement signed on Jan 13.

RSB said proceeds from the sale will be used for working capital, covering expenses related to the disposal, and for potential investments in other viable estates within 12 months of receipt.

It said the sale will enable the group to reduce high transportation costs linked to Sastat Estate’s remote location, which “lacks integration with other existing estates and mills within RSB and its group of companies.”

It added that this will avoid RSB from making further investment into Sastat Estate to render it profitable.

“The proposed disposal will in turn, allow RSB to concentrate resources on more profitable and better integrated estates and mills, thereby enhancing overall efficiency,” it said.

It said the transaction is expected to be completed in the second half of 2026, subject to approvals and consents from Director of Lands and Surveys of Sarawak.

Sastat Estate, located near Marudi along the eastern bank of Batang Baram, was acquired in 2008 for RM30.77 million.

The estate has a planted area of 1,055.45 hectares, with oil palms aged 9 to 13 years. Its net book value was RM18.08 million as of Dec 31, 2024.

According to the filing, the Sastat Estate reported net losses of RM329,773 in 2023, RM1.92 million in 2024, and an unaudited RM1.32 million for the nine months ended Sept 30, 2025.

The group anticipates a pro-forma loss of about RM3.58 million from the sale.

An independent valuation by Henry Butcher Malaysia (Sarawak) Sdn Bhd on Dec 2, 2025, appraised the estate at RM29 million, which is slightly above the agreed sale price.

RSB said the proposed disposal will not affect the company’s share capital or the substantial shareholders’ shareholdings as no new ordinary shares will be issued.