KUALA LUMPUR: Harn Len Corp Bhd has proposed to acquire the entire stake in Gemilang Bumimas Sdn Bhd (GBSB) for RM13.99 million cash, paving the way for Harn Len to expand its oil palm plantations' landbank in Sarawak.

Announcing to Bursa Malaysia today, Harn Len said it had signed a conditional share sale agreement with GBSB shareholders to acquire the entire stake in the planter, which has been dormant since its incorporation in March, 2008.

GBSB is owned by two shareholders — Ahmad Su'ut and Tan Shaw Shyong — who each holds 50% of the shares in the planter.

Harn Len said GBSB owns three parcels of land totalling 1,233 hectares in Serian, Sarawak, with a tenure of 60 years.

"With the increased acreage from this acquisition, it is hoped that Harn Len's proposed oil mill at the Masranti Plantation (which is in its initial stage of construction) will be self-sufficient with its own supplies of fresh fruit bunches," it said.

Harn Len said the proposed acquisition would be funded entirely by external borrowings.

Based on the audited financial statements of Harn Len as at Dec 31, 2008, Harn Len's net tangible asset per share would increase to RM1.25 after the acquisition of GBSB, from RM1.18.

Gearing would also increase to 43.82% compared with 37.63% prior to the acquisition of the planter, it said.

Harn Len expected the acquisition to be completed within six months from the signing of the share sale agreement.