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Sterling Plantations shares surge 900% today, potential reverse takeover opportunity

Sterling Plantations will soon become a clean shell company.
price growth concept
A shell company can be incubated with a new asset to facilitate a fresh start

Sterling Plantations Ltd (ASX:SBI) shares have surprised the market today trading up 900% or 10x higher to 10 cents.

The company is in the midst of change.

Sterling was principally involved in oil palm plantation development and the sale and marketing of grower plots until August 2017.

In the process of selling the plantation

The company made the decision to close the growers scheme and at a growers meeting in October 2017 agreed to close the growers scheme.

Within 12 months from the growers meeting, Sterling will structure the best possible proposal to sell the plantation.

As at 31 December 2017, the company had a net cash balance of $0.745 million.

The company could be the subject of a reverse takeover

Subsequent to the closure of the growers scheme, Sterling will be a clean shell company, meaning it will be a target for reverse takeover.

At the company’s AGM presentation in November 2017 it said that post-closure it would be attractive for a new business to be injected.

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