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Letter to Company

Topic: Letter to Company
Order Description
17,000 acres (Amintulai & Lumuton)
After Sabah Cabinet meeting, the 17,000 acres was approved and given to Company A. Once they get this project, the make an agreement with YAYASAN. SO yayasan own 40% and company A 60% to develop this land and plant palm oil.. However, this 17,000 is commenal title land, which means the land was own by”Company B”, and kampong people didn’t accept the offer, because this land is “Company B’’, if yayasan own 40%, Company A own 60%. Then “Company B own how many %?” so the land owner confirm wouldn’t take this offer.

NOW, Company B make another offer to Company A. As Company A told B, they already make a capital cost RM22,500,000 to bid the land. And Company B told A, B alrdy make 6,500,000 to this land as well. So, the final decision is. RM1,000 PER ACRES. Company A used RM17,000,000 to buy the land. And the Rest of amount RM5,500,000 put in Company B for capital. SO COMPANY B now have RM6.5m + RM5.5m = 12m intitial cost.

17,000 have 2 different type of project.
Company A project is plantation
Company B project is logging.
• So, RM1,000 / acres is for Plantation investment capital
• RM5.5million is for logging investment capital
• So Logging project Profit sharing ratio should be. Company A own RM5,500,000/RM12,00,000 ; AND company B own RM6,500,000/RM12,000,000
• So the final ratio for Company B project logging investment should be company A own 45.8% and company B own 54.2%

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