08/08/2012 (The Star) - Subur Tiasa Holdings Bhd's wholly owned subsidiary, Victory Round Sdn Bhd, has entered into an agreement with Pelita Holdings Sdn Bhd.

The deal will see both parties setting up a joint-venture company to develop several pieces of land in Sarawak into oil palm plantations.

In a filing with Bursa Malaysia, Subur Tiasa said the parcels of land were situated in Kabah, Kanowit, Sibu with an aggregate gross area of 12,037 ha.

The land will be converted into oil palm plantations together with facilities and the provision of services such as palm oil mills.

The total plantable area for the purpose of oil palm cultivation is estimated at 7,222 ha.

Victory Round willhold 60% equity in the joint venture.

Pelita Holdings, a subsidiary of the Land Custody and Development Authority a statutory body under the Sarawak Land Development Ministry will hold 30% in the joint venture as a trustee of the Native Customary Rights Owners.

Pelita Holdings will also hold the remaining 10% equity in the project.

The joint venture will be set up with an initial authorised capital of RM100,000 and issued and paid-up capital of RM100, comprising 100 ordinary shares of RM1 each, to be subscribed in cash by Victory Round and Pelita Holdings. - Bernama