TH Plantations' 50% dividend policy
By Tamimi Omar
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TH Plantations Bhd, en-route for a listing on the Main Board by April 27, has outlined a 50% dividend payout plan from its net profit of RM30.82 million for its financial year ending Dec 31, 2006.
Managing director Datuk Rashidi Omar said on March 23 that based on the par value of the shares at 50 sen each, it would translate into a gross dividend of 16% per share or eight sen. Its paid-up is 196.09 million shares of 50 sen each.
He was confident TH Plantations would exceed its net profit forecast of RM30.82 million for its financial year ending Dec 31, 2006 if the crude palm oil (CPO) price maintains at RM1,400 per tonne.
Minister in the Prime Minister's department Datuk Dr Abdullah Mohd Zin (left) Tabung Haji chairman Tan Sri Zainol Mahmood and Rashidi (right) at the launch of the prospectus
“When the forecast was made, CPO price was below RM1,400 per tonne, but we are confident the (CPO) price would be above RM1,400,” he told reporters after issuing the prospectus in Kuala Lumpur.
TH Plantations is offering for sale 74.52 million 50 sen shares at an offer price of RM1.25 per share. It will raise RM93.14 million from the listing exercise and the proceeds will be channeled to Lembaga Tabung Haji (LTH) and 16 plantation associations.
Of that, 41.07 million shares are allocated for LTH depositors, 19.61 million shares placed out to Islamic institutions, 9.8 million shares offered to the public and 4.03 million shares to eligible directors and employees of LTH and TH Plantations.
TH Plantations’ oil palm estates cover 16,227ha, of which 15,471ha are fully planted. The estates are in Pahang, Johor, Negri Sembilan and Terengganu. There is a mill each in Johor, Pahang and Negri Sembilan.
Rashidi said TH Plantations would invest RM5 million to upgrade its oil palm mills to get better yields. He said the company wanted to increase the oil extraction rate (OER) from over 20% now to 22% in two to three years and up to 25% in the long-term.
If TH Plantation could increase OER by even 1%, it would translate to RM5 million sales and added: “That is not hard to do.”
TH Plantations was negotiating with several parties to acquire land in Terengganu, Sarawak and Sabah. He declined to elaborate.
