KL's L&G buys RI firm

KL's L&G buys RI firm

KUALA LUMPUR (AFP): Diversified Malaysian company Land and General Bhd. yesterday sealed a US$108 million deal to acquire a major stake in an integrated timber complex in Indonesia in a move to bolster its timber division.

Land and General signed an agreement to buy the entire equity stake of Kinley Trading Ltd. from Hoiwin Enterprises Ltd., both investment holding companies incorporated in the British Virgin Islands.

The deal gives the Malaysian listed company an 80 percent stake in Kinley's subsidiary PT Wapoga Mutiara Industries, which has a timber complex in Biak, Irian Jaya, company officials said.

"The complex is involved in various downstream activities such as the production of sawn timber, blockboards, plywood and hardboard, wood-working and trading," Land and General said in a statement.

Land and General would issue 41.5 million new shares valued at 6.50 ringgit ($2.60) each, which would raise the company's share capital by about 41.5 million ringgit to 480.4 million ringgit.

The acquisition is aimed at expanding the group's timber interests, officials said.

Land and General's 60-percent subsidiary, Odin Mining and Investment Co. Ltd., recently bought the Fenning Timber Group, an Australian firm with operations in New South Wales and Fiji.

The group also owns a timber company in Papua New Guinea, Cakara Alam (PNG) Pty. Ltd.

Land and General is also involved in property, oil and gas, manufacturing and education.