Gunung Capital Bhd has inked a Memorandum of Understanding with Jendala Padu Sdn Bhd to jointly work on improving the yield of the Pandan Land Bintulu Palm Oil Estate.
Additionally, the solutions derived from the MoU will provide a basis for a project management contract to manage the oil palm estate on a long-term basis, Gunung Capital said in filing today.
Jendala Padu had entered into a lease agreement in 2016 with AML Enterprises Sdn Bhd and JP Nominees Holdings Sdn Bhd to lease both a palm oil estate and the biological assets attached until March 31, 2040. The estate is located in Bintulu, Sarawak.
The agreement will see both parties develop strategies to improve the yield of biological assets on the land, which may also include commodity hedging strategies and other financial instruments to protect yields against commodity price fluctuations.
Gunung Capital said it is also seeking to apply its existing project management experience and resources from its management of land transportation asset revenue-contracts, and small hydropower development in Perak, to other industries with long term income stream prospects.
Shares of Gunung Capital last traded on Dec 26, 2018 at 29 sen, for a market value at RM68.49 million.
Source: The Edge Markets