XL Holdings Bhd is intent on acquiring a 100% stake in a pineapple plantation company, Ergobumi Sdn Bhd, for a total cash consideration of RM40 million (€8 mln). The group said it has entered into a deal with Lee Kok Soon and Edmund Chan Seng Kee to buy their entire equity stake in Ergobumi. Upon completion of the proposed acquisition, Ergobumi will become a wholly-owned subsidiary of XL Holdings.
The group said the proposed acquisition is expected to be completed by the fourth quarter of 2021 (4Q21).
XL Holdings noted that the vegetables market in Malaysia is considered a mature market that has a long-standing presence in the country with vegetable farming activities widely undertaken throughout the country. It added that in terms of external trade, Malaysia is a net importer of vegetables.
“In 2019, Malaysia registered a trade deficit of RM3.64 billion, with total exports amounting to RM1 billion while total imports stood at RM4.64 billion. In 2020, the planted area and production of vegetables is estimated to be measured at 64,219 hectares and 1.1 million tonnes, respectively,” the group said.
XL Holdings, is an investment holding company, which engages in the breeding and trading of Asian Arowana and other ornamental fish primarily in Malaysia.