MALAYSIAN firm Lion Forest Industries Berhad plans to acquire 58,000 hectares of land in Kampong Thom province for US$26.1 million, the company announced yesterday.

The company has also announced its intention to purchase 9,995 hectares of land in Preah Vihear province for $3.9 million, according to a previous statement.

LFIB, which distributes building materials, petroleum and automotive products, will use the land to plant oil palm and rubber, a company statement said.

The move comes after LFIB over the past year has disposed of its tyre operations in Malaysia and China and seeks to identify a new core business, according to the statement.

“The proposal allows the LFIB Group the opportunity to tap into a new core business and also to diversify its earnings stream by investing in lands for the purposes of plantation of rubber and/or oil palm.”

LFIB will partner with domestic firm Seng Enterprise on the deal, with Seng Enterprise helping LFIB to attain the economic land concession from the Cambodian government.

Seng Enterprise will assist six wholly owned subsidiaries of Harta Impiana, which itself is a wholly owned subsidiary of LFIB, to buy land rights at $450 per hectare for a period of no less than 70 years.

Each of the six subsidiaries will purchase 10,000 hectares or under, the filing said. Land concessions can be no larger than 10,000 hectares, according to Cambodian law. The deals are expected to be completed later in 2011, it said.