Genting Plantations to expand Indonesia presence
Genting Plantations Bhd’s unit, AsianIndo Holdings Pte Ltd, has signed a conditional sale and purchase agreement with Lee Rubber to buy a 100 per cent stake in Knowledge One Investment Pte Ltd for US$94.97 million (RM407 million).
The company said Knowledge One held the rights to cultivate about 14,661ha in Kalimantan, Indonesia, via its 85 per cent owned-subsidiary, PT Kharisma Inti Usaha.
Upon completion of the acquisition, Genting Plantations will own a 85 per cent stake in Kharisma.
Genting Plantations said the acquisition, which would be financed externally, was in line with its aim to expand its plantation landbank.
“It will increase Genting Plantations’ combined plantation landbank in Malaysia and Indonesia by 14,661ha to 242,597ha from 227,936ha currently.
“It will also accelerate its upstream expansion in Indonesia as some 12,893ha have already been planted, thus increasing its total planted area there to 84,833ha, an increase of 17.9 per cent,” it said.
The addition of Kharisma’s palm oil mill would bring its mill ownership in Indonesia to four units with a total capacity of 255 tonnes per hour.
The proposed acquisition was expected to contribute positively to the group’s future earnings and shareholders’ value, it added.