Miri: Rimbunan Sawit Bhd (RSB) has announced the sale of 1,504 hectares of land located in Batang Baram, Miri, for a total of RM28 million. The company disclosed this development in a filing with Bursa Malaysia, stating that its subsidiary, Sastat Holdings Sdn Bhd, has finalized sale and purchase agreements with Trinity Capital Resources Sdn Bhd (TCRSB) for the land at Lot 205 Teraja Land District.

According to BERNAMA News Agency, the disposal price was negotiated on a willing-buyer, willing-seller basis, with consideration of the Sastat Estate's market value appraised at RM29 million by independent valuer Henry Butcher Malaysia (Sarawak) Sdn Bhd, using the discounted cash flow method. The company intends to utilize the proceeds for working capital, including defraying expenses related to the proposed disposal, as well as investing in and developing potential estates within 12 months from receiving the disposal consideration.

RSB explained that the proposed disposal is strategic, allowing the group to cease incurring high transportation costs due to the estate's remote location, which is not integrated with its other estates and mills. It also helps avoid further capital expenditure required to make the estate profitable. The company further stated that this move would enable RSB to focus resources on more profitable and better-integrated estates and mills, thereby improving overall efficiency.

The group assured that the proposed disposal will not impact the company's share capital or the substantial shareholders' shareholdings, as no new ordinary shares will be issued. The transaction is pending approvals from the Sarawak Director of Lands and Surveys and is anticipated to be completed in the second half of 2026, barring unforeseen circumstances.