MKH Oil Palm (East Kalimantan) Bhd (MKHOP) has acquired its entire stake in PT Tunas Tani Tutus (PT Tunas), an Indonesian oil palm plantation company with a land area of 3,096.95 hectares, for RM9.1 million.
MKHOP together with its subsidiary Hala Maju Sdn Bhd will acquire 1,000 ordinary shares in PT Tunas – representing 100% equity stake – from PT Sinar Reka Murni through a cash payment.
The acquisition will be financed through the proceeds of an initial public offering (IPO) as well as the company’s internal funds.
PT Tunas’ land area of approximately 3,096.95 hectares comprising Block A and Block B has obtained a Plantation Business Permit from the Indonesian authorities on 1 August 2025.
MKHOP Chairman Tan Sri Alex Chen Kooi Chiew said the acquisition is in line with the group’s long-term strategy to expand its plantation business through the purchase of companies that own greenfield land.
He also stressed that the acquisition will increase the group’s land bank from 18,205.30 hectares to 21,302.25 hectares.
MKHOP also reported a net profit for the third quarter ended 30 June 2025 of 10.3% higher at RM17.7 million compared to the same period last year, despite a 15.8% decline in revenue to RM78.6 million.
This encouraging performance was supported by an increase in the average selling price of crude palm oil (CPO), palm kernel oil (CPKO) and palm kernel (PK).
