Logo of Phnom Penh Post newspaper Phnom Penh Post - Malaysian firm eyes Kampong Thom land

Malaysian firm eyes Kampong Thom land

Malaysian firm eyes Kampong Thom land

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.

MOST VIEWED

  • Government hits back at threats to pull EBA, suspend UN seat

    The spokesman for the ruling Cambodian People’s Party (CPP) has said the government is in no way concerned after the European Parliament gave it three months to reverse what it called the “systematic repression of the political opposition”. Ignoring the ultimatum could mean facing

  • Chinese influx pushing locals, Westerners out of Preah Sihanouk

    Some within the Kingdom’s tourism industry have speculated that the recent influx of Chinese visitors may hinder domestic tourism as the price of accommodations in the coastal city of Sihanoukville continues to rise. Preah Sihanouk province, which has become a hotbed for Chinese investment

  • Sar Kheng: Sokha requested security

    Interior Minister Sar Kheng on Sunday revealed the story behind the transfer of former opposition party leader Kem Sokha from Trapaing Phlong prison in Tbong Khmum province to his house in the capital. Speaking at the ruling Cambodian People’s Party (CPP) headquarters in Prey

  • ‘Dire consequences’ from sanctions, warns AmCham

    American businesspeople in Cambodia have warned that any sanction against the Kingdom would have “dire consequences” that could push Cambodia even further into the arms of China. In a letter to US senators and representatives dated Monday, the American Chamber of Commerce Cambodia (AmCham) said