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Perlis Plantations Bhd

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Perlis Plantations Bhd

PPB Group Berhad
Public
Founded Chuping, Perlis (1968)
Headquarters Kuala Lumpur, Malaysia
Products Foods
Plantations
Manufacturing & Services
Entertainment
Property development
Employees 15,000 (2004)
Website www.ppbgroup.com

PPB Group Berhad () is a diversified company which was incorporated in November 1968, and its business beginning with cultivating sugar cane and to extract, process and market sugar. In May 1972, PPB was listed on both the stock exchanges in Kuala Lumpur and Singapore with an issued and paid-up capital of RM15.0 million.

Today, PPB Group Berhad ranks among the top companies listed on the Bursa Malaysia Securities Berhad by turnover as well as assets. Its total assets exceed RM5.8 billion and workforce numbers more than 15,000 employees. PPB is also the single largest shareholder owning 18.3% equity interest in one of Asia's largest integrated agribusiness groups, Wilmar International Limited which operates in more than 20 countries across four continents and has over 300 processing plants.

Through rapid organic growth and strategic acquisitions and joint ventures, PPB Group Berhad is now one of the most diversified conglomerates in Asia engaged in a wide spectrum of activities ranging from sugar refining, flour and feed milling, edible oils processing, oil palm cultivation, environmental engineering and waste management, film exhibition and distribution, property development to commodity trading. Overseas, the Group currently has operations in Vietnam, Myanmar and Singapore; and plans to expand further into China and other ASEAN countries.

Business structure

PPB Group has its headquarters in Kuala Lumpur, Malaysia. The Group is well-diversified conglomerate engaged in a wide spectrum of activities:

  • Foods
  • Plantations
  • Manufacturing & Services
  • Entertainment
  • Property Development

History

  • 1968–1969

PPB was established on 1 November 1968 to undertake large-scale cultivation and milling of sugar cane in Chuping, Perlis, in response to the Government’s encouragement to establish a local sugar industry. PPB and FELDA each set aside about 44.5 km² of land for the sugar project and both parties established a 50:50 joint venture sugar cane mill and refinery under Kilang Gula Felda Perlis Sdn Bhd (KGFP) to process the canes from both plantations.

  • 1972

PPB offered its shares to the public both listed on the Stock Exchange of Malaysia and Singapore, in May, with an issued and paid-up capital of RM15.0 million.

  • 1973–1974

In the first harvesting season, KGFP commenced production with a total sugar output of 8,500 tonnes. The year ended 30 September 1974, PPB achieved its first pre-tax profit of RM2.0 million on a turnover of RM9.3 million.

  • 1976

PPB subsequently embarked on a diversification programme without dependent on the vagaries of one crop. PPB acquired Malayan Sugar Manufacturing Company Berhad (MSM), which operates Malaysia’s largest sugar refinery at Prai, Province Wellesley and thus became a vertically integrated organization engaged in all aspects of the sugar industry from cane growing to sugar milling, refining and distribution. Through MSM, PPB also became indirectly involved in the hotel industry, polybags manufacturing and bulking operations.

  • 1979

Further expanded into property development, tin mining and rubber plantations through the acquisition of Mineral Securities Malaysia Berhad (now known as Minsec Properties Berhad). Mineral Securities’ principal asset then was its holding in public-listed Rahman Hydraulic Tin Berhad (RHTB), subsequently disposed of its 41.8% equity interest in RHTB in the open market.

  • 1980

Acquired the entire issued capital of South Island Mining Company Sdn Bhd which operates mining leases for iron ore and a rubber plantation near Sungei Petani, Kedah.

  • 1982–1983

Tai Yan Realty Sdn Bhd (now known as PPB Hartabina Sdn Bhd) which is the developer of Taman Segar in Cheras, Kuala Lumpur became a wholly owned subsidiary of PPB. PPB Hartabina owns Cheras Leisure Mall and Cheras Plaza. PPB acquired 34% equity interest in Shaw Brothers (M) Sdn Bhd (SBM), which owns properties in major towns throughout Malaysia.

  • 1986

To complement the Group's property development activities, PPB ventured into retail operations through Chujitsu Superstore Sdn Bhd (now known as Tops Retail (Malaysia) Sdn Bhd. PPB ventured into oil palm cultivation in Sarawak through Saremas Sdn Bhd to establish an oil palm plantation on 99 km² of land in the Suai District of the Fourth Division.

  • 1987

PPB made takeover offers for Rasa Sayang Beach Hotels (Pg) Berhad (now known as Shangri-La Hotels (Malaysia) Berhad [SHMB]) and Federal Flour Mills Berhad (now known as FFM Berhad [FFM]) which resulted in the two companies becoming subsidiaries of PPB. The takeover of FFM enabled PPB to diversify into flour and animal feed milling, edible oil processing and commodity trading. PPB acquired 60% equity interest in Sapi Plantations Sdn Bhd to operate a fully integrated oil palm project over 142 km² of land near Sandakan, Sabah. The Sapi Plantations project was another step towards making oil palm cultivation a core business of the PPB Group. PPB entered a joint venture with Golden Harvest (International) Ltd of Hong Kong to establish Golden Communications (M) Sdn Bhd (now known as Golden Screen Cinemas Sdn Bhd) which now operates a chain of cinemas throughout the country including an 18-screen cineplex in Kuala Lumpur, the largest in South East Asia.

  • 1990

To further expand its cinema operations, PPB acquired Borneo Filem Organization (M) Sdn Bhd (now known as PPB Leisure Holdings Sdn Bhd) which owned the Cathay cinema chain in Malaysia.

  • 1992

SHMB and UBN Holdings Sdn Bhd were merged and SHMB was listed on the Main Board of the Kuala Lumpur Stock Exchange in December.

  • 1993

PPB subscribed for 40% equity interest in Chemquest Sdn Bhd (Chemquest) which is principally involved in waste management, trading of chemicals and infrastructure. In 1998, PPB increased its stake in Chemquest to 55% and it is now the manufacturing and services division of PPB. PPB ventured into Indonesia through PT Healthcare Glovindo (Glovindo) which presently owns and operates a 17-line glove factory and a chlorination plant in Medan, Sumatra. Glovindo commenced production with 8 lines in late 1993.

  • 1995

In August, PPB expanded its oil palm investments into Indonesia by subscribing for 70% equity interest in PT Tidar Sungkai Sawit which owns a 102.16 km² oil palm plantation in Sumatra.

  • 1997

The East Malaysian oil palm plantation companies owned by PPB were merged under PPB Oil Palms Berhad (PPBOP) which was listed on the Main Board of the Kuala Lumpur Stock Exchange in August.

  • 1999

In October, PPB Group disposed of its 26.09% equity interest in SHMB to Shangri-La Asia Limited (SAL) in exchange for SAL shares.

  • 2000

In May, the name of the Company was changed from “Perlis Plantations Berhad” to “PPB Group Berhad” to better reflect its business activities. PPB ceased its retailing activities following the divestment of its 34.8% stake in Tops Retail (Malaysia) Sdn Bhd and the closure of its discount stores. The Group's edible oils refining operations under FFM and PPBOP were merged under a new entity, Struktur Idaman Sdn Bhd (now known as PGEO Group Sdn Bhd), to improve competitiveness and refining margins. Konsortium ABASS Sdn Bhd, 25% associated company of Chemquest, signed a Privatization and Concession Agreement with the State Government of Selangor for the operation and maintenance of the Sungei Semenyih Dam and Water Treatment Plant and other water related works for a period of 30 years.

  • 2001–2002

Divested its hotel investment of 25% and 20% equity interest in Pantai Dalit Beach Resort Sdn Bhd and Tanjong Aru Hotel Sdn Bhd respectively.

  • 2003–2004

PPB privatize its then 54.23% subsidiary, FFM Berhad, by way of a members’ scheme of arrangement under section 176 of the Companies Act, 1965. FFM was delisted from Bursa Malaysia and is a wholly owned subsidiary of PPB.

  • 2006–2007

PPB received an offer from Wilmar International Limited (Wilmar) in 2006 to acquire from FFM Berhad its 65.8% and 28% equity interest in PGEO Group and Kuok Oils & Grains Pte Ltd respectively. PPB Oils Palm Berhad, a 55.6% subsidiary of PPB also received a Notice of Conditional Voluntary Offer from Wilmar to acquire all of its shares under the Malaysian Code on Takeovers and Mergers 1998 on the basis of 2.3 new Wilmar shares for every PPBOP share acquired.

In February 2007, PPB Leisure Holdings Sdn Bhd completed the acquisition of 40.2% interest in Golden Screen Cinemas Sdn Bhd (GSC) from Golden Harvest Films Distribution Holding Ltd making GSC a 94.4% subsidiary of the Group.[1]

References

External links

  • PPB Group official site
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