Matang was incorporated as a special purpose vehicle to facilitate the listing of MHB on the ACE Market of Bursa Malaysia Securities Berhad. Through our subsidiaries, Matang group of companies (“Matang Group” or the “Group”) is involved in the management of plantation estate, sale of FFB and property investment holding.
The history of Matang Group can be traced back to the 1970’s era when businesses were mostly small family-owned sole proprietorships or partnerships that relied heavily on the involvement of family members. As the Malaysian economy grew, the need emerged for entrepreneurs to break away from traditional family business practices and began to effect the formation of large corporations in order to withstand increasing business competition.
This led to the establishment of Multi-Purpose Holdings Berhad (currently known as Magnum Berhad) in 1975, a company that raised capital from the community for investment purposes. Subsequent to this successful initiative, MHB became one of the further initiatives created in Johor in April 1978. The fund raising exercise of MHB was completed on 15 December 1981 and it successfully raised RM60 million with the issuance of 120,000,000 MHB shares at RM0.50 each.
On 11 September 1982, MRSB, our wholly-owned subsidiary was incorporated. The principal activity of MRSB is property investment holding.
In September 1983, MHB acquired our plantation land with a total net land area of 1,096.3 hectares within the District of Ledang and District of Segamat (“Matang Estate”) for a total purchase consideration of RM19.64 million. Subsequent to the completion of acquisition of Matang Estate, we ventured into the plantation sector with the cultivation of rubber (on 72.6% of the land area) and oil palm (on the remaining 27.4% of land area) in Matang Estate in 1983.
In 1988, MHB acquired the Larkin Investment Property which is now made up of three units of detached buildings at Kawasan Perindustrian Larkin (also known as Dato’ Onn Industrial Estate) in Johor Bahru for a total purchase consideration of RM2.8 million. At the time of acquisition, the Larkin Investment Property had a 1½-storey detached warehouse (Block A) which was built in 1976. In 1989, MHB completed the construction of another 1½-storey detached warehouse cum factory (Block B) on the Larkin Investment Property.
In 1996, our rubber yield declined drastically due to our ageing rubber trees. During this period, palm oil demand was on the rise which led to our management’s decision to cease our rubber plantation activities and to replace the rubber trees with oil palms. In 1996, MHB sold the Matang Estate to MRSB for the total consideration of RM54.18 million, satisfied partly via the allotment of 37.93 million ordinary shares of RM1.00 each in MRSB to MHB and partly via cash payment of RM16.25 million.
In 1998, MHB completed the construction of a 5-storey detached flatted factory (Block C) on the Larkin Investment Property. In 2001, MRSB acquired the Tangkak Investment Land (Vacant land located in Tangkak, District of Ledang, Johor with a total land area of 5,016.85 square metres) for a total purchase consideration of RM1.2 million.
In 2012, MHB was certified as having fulfilled the requirements of the ‘Code of Good Agriculture Practice for Oil Palm Estates and Smallholdings’ from the MPOB.
On 6 May 2016, MHB and Matang entered into the Scheme Agreement to facilitate the Exchange of Shares. The shareholders of MHB had, at an Extraordinary General Meeting/Court Convened Meeting held on 15 October 2016 approved the proposed exchange of between Matang and the shareholders of MHB per the record of shareholders on 29 April 2016, of the entire issued and paid-up share capital in MHB of RM60,000,002 comprising 120,000,004 MHB shares of RM0.50 each for 1,680,000,056 new Matang shares of RM0.10 each (“Matang Share”) (at the issue price of RM0.10 each per Matang Share) under Section 176 of the Companies Act, 1965 on the basis of 14 new Matang Shares for every one MHB Share held (“Exchange of Shares”). The Exchange of Shares was completed on 14 November 2016 and thereafter, MHB and its wholly-owned subsidiary, MRSB, became our wholly-owned subsidiaries.