25/07/2012 (Bernama) - TH Plantations Bhd is poised for a stronger balance sheet for future growth with the completion of its acquisition of two companies, which collectively own 41,424 hectares of land.

TH Plantations, the plantation arm of Lembaga Tabung Haji, primarily engages in the business of oil palm plantations here. Maybank Investment Bank Research said the acquisition is expected to be completed by the fourth quarter of this year.

"Investors' perception may be slightly negative given the potential earnings per share dilution of 8.2 per cent.

"Over time, we believe the group would be re-rated given its new plantation size of about 86,400 hectares, making it one of the largest planters in Malaysia," it said in a research note.

Post-acquisition, its gross gearing would remain healthy and conducive for growth, at 22 per cent, it said.