KUALA LUMPUR (April 25): Rimbunan Sawit Bhd’s auditor Messrs Crowe Malaysia PLT has raised a material uncertainty related to the going concern of the Main Market-listed plantation group in respect of the financial statement for the fiscal year ended Dec 31, 2022 (FY2022). Nonetheless, Crowe Malaysia expressed an unmodified audit opinion, which means the auditor is satisfied that Rimbunan Sawit’s financial statements provide a true and fair view of the group’s financial position, performance and cash flow for FY2022.
palm oil fruit
IN the last several years, the Malaysian plantation industry has been buzzing with robust merger and acquisition (M&A) deals against the backdrop of weak crude palm oil (CPO) prices.
With land scarcity also playing a role, the momentum for M&A activities in the plantation sector picked up in 2020 after slowing down slightly a year earlier.
Companies with excess estates sought to dispose of the assets as they had to deal with depressed earnings and unproductive land usage.
On the contrary, companies with excess cash have been buying over these lands at attractive valuations, considering that soft CPO prices have limited the sellers’ ability to bargain for higher land sale prices.