Hextar Global unit to sell Raub durian plantation land for RM13.75m

• With the sale, Hextar Global said the group plans to focus on operating durian collection centres instead, where various sellers can supply the fruit to the group.

KUALA LUMPUR (Sept 3): Hextar Global Bhd (KL:HEXTAR) said on Wednesday its indirect unit, PHG Ever Fresh Plantation Sdn Bhd, is selling three adjacent parcels of durian plantation land in Raub, Pahang, for RM13.75 million.

The group decided to sell the plots following lower-than-expected yields from the plantation, which it has deemed commercially unviable in the long term. Hence, the disposal provides PHG a chance to realise a favourable return, saying the purchaser offered an attractive price for the plots.

With the sale, Hextar Global said the group plans to focus on operating durian collection centres instead, where various sellers can supply the fruit to the group. It said it will concentrate on sorting and processing durians into pulp, paste and frozen products for export.

Hextar Global has an effective 28.05% stake in PHG, as PHG is 55%-owned by Hextar Fruits Sdn Bhd, which is in turn 51%-owned by Hextar Global.

PHG has entered into three separate sale and purchase agreements with Chateau MSK Sdn Bhd for the proposed disposal of the plots, which span slightly more than 10 hectares in total. PHG acquired the parcels in September 2020 for RM10.74 million, with a net book value of RM11.31 million as at July 31, 2025.

The disposal, which will be completed in six months, will generate a gain of RM2.3 million against the purchase cost, but will be recorded as a RM1.2 million loss due to revaluation requirements under MFRS 116, the group noted.

Of the proceeds, RM6.7 million will go towards repayment of term loans, RM5.51 million to settle payables and related-party balances, and RM1.38 million for dividend payments.

Shares in Hextar Global ended unchanged at 89.5 sen on Wednesday, giving the agrochemicals and fertiliser firm a market capitalisation of RM3.5 billion.

As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.