Huat Lai Broiler Breeders Sdn Bhd entered into a conditional sale and purchase agreement to acquire Masjid Tanah and Selandar plantation estates from United Malacca Berhad (KLSE:UMCCA) for MYR 96.8 million on January 3, 2019. The consideration shall be paid in cash comprising a retention sum of MYR 2.9 million, balance deposit of MYR 6.78 million and balance sale consideration of MYR 87.11 million paid within 30 days from the unconditional date or by March 31, 2019, whichever is later. On June 3, 2019, Huat Lai Broiler Breeders Sdn Bhd entered into a supplemental agreement. In related transactions, United Malacca Berhad entered into conditional sale and purchase agreements to sell Tampin estate and Pelin estate. The agreement may be terminated in the event that the conditions precedent are not fulfilled or there is a breach of any of the terms. United Malacca Berhad shall refund the balance deposit and Huat Lai Broiler Breeders Sdn Bhd's solicitor shall refund the retention sum in case of termination. All employees of Masjid Tanah and Selandar plantation estates shall continue to be employed. The transaction is conditional upon approval of the Estate Land Board of the State of Melaka, approval of shareholders of United Malacca and Huat Lai Broiler, if required and execution of each of the related conditional sale and purchase agreements and fulfillment of all conditions precedent in the conditional sale and purchase agreements. Pursuant to the supplemental agreement, the transaction will not be conditional upon the execution of each of the related conditional sale and purchase agreements or the fulfillment of any conditions precedent in related agreements. Huat Lai Broiler Breeders Sdn Bhd and United Malacca Berhad shall not be obliged to complete the transaction unless the proposed sale of Masjid Tanah plantation estate and Selandar plantation estate are completed simultaneously. On May 27, 2019, United Malacca Berhad obtained the approval from Estate Land Board of State of Melaka. The approval by Estate Land Board of State of Melaka is subject to a validity period of 30 days with effect from May 27, 2019. On June 27, 2019, all the applicable conditions precedent under the agreement have been fulfilled. The transaction is expected to be completed on March 31, 2019 or 30 days from the unconditional date, whichever is later. The transaction proceeds are expected to be utilized for plantation development expenditure and for general working capital. The transaction is expected to contribute positively to the future earnings and net assets of United Malacca. C H Williams Talhar & Wong Sdn Bhd acted as the valuer to United Malacca Berhad.