Kuala lumpur: Rimbunan Sawit Bhd (RSB) is set to sell 1,504 hectares in Batang Baram, Miri, for RM28 million. The company announced this decision through a filing with Bursa Malaysia, stating that its subsidiary, Sastat Holdings Sdn Bhd, has entered into sale and purchase agreements with Trinity Capital Resources Sdn Bhd for the land at Lot 205 Teraja Land District.

According to BERNAMA News Agency, the disposal consideration was determined on a willing-buyer, willing-seller basis, considering the Sastat Estate's market value of RM29 million, appraised by independent valuer Henry Butcher Malaysia (Sarawak) Sdn Bhd using the discounted cash flow method. The funds from the sale are intended for working capital purposes, including defraying expenses related to the proposed disposal, and for investment and development of viable potential estates within 12 months from the receipt of the disposal consideration.

The company aims to discontinue incurring high transportation costs due to the estate's remote location and avoid further capital expenditure to make the estate profitable. RSB plans to concentrate its resources on more profitable and better-integrated estates and mills to enhance overall efficiency.

RSB clarified that the proposed disposal will not affect 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 expected to be completed in the second half of 2026, barring unforeseen circumstances.