Palm Oil Investment

On 1 May 2011, the Company finalised the acquisition of Cheekah-Kemayan Plantations Sdn Bhd. The new subsidiary owns 4,060 acres of palm oil estate and 50 tonne per hour Palm Oil Mill.

The plantation is located near Kemayan in the state of Pahang in Peninsular Malaysia.

Currently the estate produces some 40,000 tonnes of fruit per annum and the mill processes this and a further 140,000 tonnes of fruit purchased from surrounding estates. The operations are conducted on behalf of the subsidiary under a management contract with the Prosper Group. They employ some 200 full time personnel.

The investment provides a source of capital growth and ongoing cash returns to assist the Company maintain its long term dividend producing capacity.