28/12/2010 (Bernama) - Glenealy Plantations (Mlaya) Bhd's wholly-owned sub-sidiary, Timor Enterprises Sdn Bhd plans to dispose of a palm oil mill to Samling Plantation Sdn Bhd for RM19.8 million.

In a filling to Bursa Malaysia, the company said Timor has enteres into a sales and purchase agreement for the disposal.

The mill, Belaga Palm Oil (BPOM), is located in Kapit, Sarawak.

Timor plans to use the proceeds from the disposal for the development of its existing oil palm estates in Sarawak and other viable investments opportunities to be identified.

"We intend to fully utilised the proceeds from the disposal within 12 months from the completion date of the sale," said the company.

The disposal of BPOM to Samling Plantation is to streamline the operations of Glenealy.

Currently, Timor leases BPOM to Samling Plantation.

With the acquisition of BPOM, Samling Plantation will own the palm oil mill which is located in its oil pam estate.