FOR A Public Listed Company

Client

Confidential

Products & Services

• Agronomic Assessment
• Financial Assessment
• Plantation Business Strategy
• Business Valuation
• Financial Modelling

Description of Project

Client

A plantation company managing more than 97,000 hectares of land bank across the East Coast and South of Peninsular Malaysia, as well as Sabah and Sarawak

Background

A potential buyer is interested in purchasing assets covering approximately 35,000 hectares, and negotiations are currently ongoing. A valuation is required to determine the overall worth of the assets involved and to evaluate the deal’s viability, ensuring the client secures the deal with optimal returns.

Challenges & Expectations

The proposed transaction involves significant complexity and scale, requiring comprehensive expertise in operational and financial assessments to ensure its success. Thus, the client would like to engage a third party to provide the necessary expertise and manpower to optimise revenue generation and enhance the overall valuation of the assets.

Our Role on the Project

Scope of Services

To conduct an operational and financial assessment, incorporating agronomic best practices aimed at enhancing the overall performance and valuation of the oil palm plantations and mill.

Solutions / Outcomes Delivered

• Conducted a comprehensive plantation operations review, including land assessment and agronomic evaluation across all estates.
• Conducted an on-ground estate assessment, including evaluation of field and palm condition, soil and terrain evaluation, planting material selection and its impact o yield, as well as pest and disease assessment. 
• Evaluated the performance of the mills to determine operational efficiency.
• Assessed the assets and infrastructure
• Developed a 28-year financial model to forecast yield and cash flow for the plantations and conducted a business valuation of the plantations.
• Recommended and adapted enhancement initiatives to improve the overall performance of the assets, including estates, human capital, ESG plans, and mill improvements.
• Proposed deal strategies and supported negotiations with the buyer.