03/04/2012 (Bernama) - Lembaga Tabung Haji (TH) today announced that it has conditionally accepted the proposed offer from an Indonesian based company for the latter's 95 per cent equity interest in PT TH Indo Plantation (THIP).

The acceptance of the offer, following an evaluation and assessment of the offer, is subject to transaction details to be finalised in due course, TH said in a statement today.

Lembaga Tabung Haji Group Managing Director and Chief Executive Officer Datuk Ismee Ismail said THIP owns and operates 83,879 hectares of oil palm plantations in Riau Indonesia.

The offer is expected to present a good opportunity for the company to realise the appreciation in value of its investment in THIP.

"Compared to the value of its initial investment, the offer received will provide a favourable return on investment and transaction such as this and will definitely benefit its depositors directly," Ismee said.

The proceeds from the divestment are expected to be invested in other plantation assests.

"Plantations will continue to be one of the main investment sectors in TH, taking into consideration of its steady cash flows and good term prospects," Ismee said.

He said TH will continue its efforts to manage its investments in the best interest of its seven million depositors, while ensuring competitiveness returns.