27/09/05 KUALA LUMPUR (Dow Jones)--Malaysia's TH Plantations Bhd.Wednesday said 38% of the company will be floated by the year-end as itsshareholders trim their stakes.

A total 74.5 million shares will be offered, said Mohd. Bakke Salleh,chief executive of the Pilgrims Fund Board, which currently owns 97% of THPlantations. The remaining 3% of TH Plantations is held by the TerengganuFarmers Association, Bakke said.

The Pilgrims Fund is a MYR12 billion government-managed savings fund thatpools savings from Muslims planning for a haj, or pilgrimage, to Mecca.

Following the share offer, the Pilgrims Fund will own 60% of THPlantations, while the Farmers Association will hold 2%, he said.

He declined to disclose the value of the offer, saying details will be inthe share offer prospectus, which may be published next month.

In 2004, TH Plantations posted net profit of MYR39.6 million, flat from ayear earlier, Bakke said. He attributed the lackluster performance to afall in crude palm oil prices.

He didn't offer a forecast for 2005 net profit, but said seven-month netprofit was MYR14.6 million. Second-half earnings may double from thefirst-half due to peak palm oil production in the latter half of the year,Bakke said.

TH Plantations owns 16,277 hectares of oil palm estates in Malaysia, andmanages 138,000 hectares of plantations owned by the Pilgrims Fund. Themanagement fee TH Plantations receives makes up about 25% of its netprofit, Bakke said.

Commerce International Merchant Bankers Bhd. is adviser and leadunderwriter for the offer. The other underwriters are Mayban SecuritiesSdn. Bhd., Affin Securities Sdn. Bhd. and BIMB Securities Sdn. Bhd., Bakkesaid