PPB Group Bhd, controlled by tycoon Tan Sri Robert Kuok, stands to lose its dominance of the domestic sugar market under a proposal to sell its entire stake in two sugar units and land used for sugar cane cultivation to Federal Land Development Authority (Felda) for RM1.29 billion.
The proposed sale will see PPB exiting the local sugar industry, which had earned founder Kuok his nickname of "Sugar King".
In a statement to Bursa Malaysia yesterday, PPB said it will dispose of its entire 36.36 million shares of RM1 each in Malayan Sugar Manufacturing Co Bhd (MSM) to Felda Global Ventures Holdings Sdn Bhd, a wholly-owned unit of Felda.
This sale does not include assets and investment holdings held or previously held by MSM, which are not part of its sugar refining operations.
It is also selling its 50 per cent stake, or six million shares of RM1 each, in Kilang Gula Felda Perlis Sdn Bhd to Felda Global Ventures for RM26.31 million.
Felda Holdings Bhd already holds a 50 per cent stake in the company, which is involved in sugar cane milling and refining of domestic and imported raw sugar.
PPB said it will also sell 5,797ha used for sugar cane cultivation in Chuping, Perlis, to Felda Global Ventures for RM45 million.
The group said the disposal of these three assets will help it realise its investments with a substantial gain.
Meanwhile, its 49 per cent-owned associate Grenfell Holdings Sdn Bhd will sell its stake in plantation group and sugar refiner Tradewinds (M) Bhd for RM207.53 million.
Tradewinds is controlled by businessman Tan Sri Syed Mokhtar Al-Bukhary.
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