Cropmate plans RM12m Bintulu land buy for fertiliser factory
Cropmate Bhd plans to acquire four acres of vacant industrial land in Bintulu, Sarawak, for RM12 million in cash. The site, held under a 60-year lease expiring in 2078, will host a fertiliser factory and warehouse to support the group's East Malaysia expansion.
PETALING JAYA (Nov 11): Cropmate Bhd plans to acquire approximately four acres of vacant industrial land in Bintulu, Sarawak, for RM12 million in cash, with plans to develop a fertiliser factory and warehouse to support its East Malaysia expansion.
In a Bursa Malaysia filing on Tuesday (Nov 10), the group said its indirect wholly-owned subsidiary, Cropmate Fertilizer Bintulu Sdn Bhd, had signed a conditional sale and purchase agreement with Dominant Potential Sdn Bhd for the acquisition. The approximately 1.6-hectare parcel, held under Lot 3379, Block 20 Kemena Land District, is in Kidurong Industrial Area Phase II. Its 60-year lease expires on Nov 26, 2078.
Subject to obtaining the necessary approvals and complying with the land’s title conditions, Cropmate intends to build a factory for formulating and blending conventional and specialty fertilisers, alongside warehousing for straight fertilisers and related products. The group said the site’s proximity to Bintulu Port was expected to help reduce transportation and distribution costs for raw materials and finished products. The planned facility would also improve supply efficiency and shorten delivery times for customers across East Malaysia, it added.
Cropmate said the purchase price was agreed on a willing-buyer, willing-seller basis, taking into account the land’s market value and the acquisition’s rationale and benefits. The price matches the RM12 million market value appraised by Henry Butcher Malaysia (Miri) Sdn Bhd as at July 16, 2026. The acquisition will be funded through internally generated funds and bank borrowings, with the exact funding mix yet to be determined.
Under the agreement, a RM3.6 million deposit is payable upon signing. The RM8.4 million balance is payable within six months of the vendor or its solicitors delivering notice confirming fulfilment of the land-transfer consent condition, when the agreement becomes unconditional. The vendor must obtain written consent from the Director of Lands and Surveys to transfer the land to the purchaser. The agreement provides an initial six-month period to secure consent, followed by a six-month extension and a final three-month extension if consent remains outstanding.
Cropmate expects the land acquisition to be completed by the third quarter of 2028, barring unforeseen circumstances. The company said shareholder approval is not required. Cropmate said the acquisition is not expected to have any material immediate effect on the group’s earnings for the financial year ending Dec 31, 2026. However, the anticipated benefits are expected to contribute positively to future earnings, barring unforeseen circumstances, it added.
