KUALA LUMPUR: Property developer PRG Holdings Bhd, which is also involved in healthcare and manufacturing of webbings, furniture components and upholstery, is buying into teak plantations.

Today, PRG shareholders' approved its plan to buy 364.79ha teak plantation from Alifya Forestry Sdn Bhd for RM89.2 million in Kelantan.

PRG, in a statement today, said the acquisition of the two parcels of teak plantation would be satisfied via RM59.2 million cash and 40.3 million new shares at 74.45 sen each, amounting to RM30 million.

The first parcel in Gua Musang, measuring 137ha, is an agriculture land with a 50-year leasehold period expiring on June 21, 2053.

The second parcel in Lojing, measuring 227.79ha, also has a 50-year leasehold that expires on August 7, 2066.

PRG has obtained a Foreign Activity Permit to harvest the teak trees in Lojing.

It will make a submission to Kelantatn Forestry Department for a permit to harvest the same in Gua Musang in due course.

On December 14 last year, PRG said it had received a Letter of Intent from KNX Construction Sdn Bhd to buy all timber harvested at the teak plantation.

PRG expects to harvest 150,000 cubic metres of teak timber worth RM180 million based on RM1,200 per cubic metre.

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