TDM Berhad sold its poultry business, under TD Poultry, to Vision Poultry for RM4 million (US$1.3 million).
TDM expects the proceeds from the sale to be used to develop one of its oil palm plantations in Kalimantan and other general working capital purposes. The company said the sale will further streamline its core business, which focuses on oil palm plantations and healthcare.
The cash consideration is based on the audited net assets as of December 2010 of TD Poultry at RM3.4 million (US$1.09 million) and it represents a price to book ratio of 1.19 times. Vision Poultry will place a RM1 million (US$321,018) deposit within 14 days and the remaining amount will be payable in eight equal annual installments.
