MP Evans completes US$59m East Kalimantan acquisition
MP Evans Group PLC (AIM:MPE) said it has completed the US$59.4 million acquisition of palm oil plantations in East Kalimantan, Indonesia.
To recap, MPE is buying 8,350 hectares from P.T. Agro Bumi Kaltim (ABK) and P.T. Nusantara Agro Sentosa (NAS), of which 1,686 hectares are managed on behalf of associated smallholder co-operatives.
Broken down, the UK-listed group is paying US$8,900 per group-owned hectare, plus an expected US$4.3 million for working capital.
The total cash outlay by the group is US$41.6 million, comprising US$36.1 million for the entire share capital of the acquired companies and US$5.5 million for the settlement of shareholder loans. Additionally, MPE is taking on bank loans of US$22.1 million.
"The completion of the ABK and NAS acquisition is an important step forward in the group's continuing growth and development," said chairman Peter Hadsley-Chaplin.
"Realising our strategic objective to increase the scale of operations close to our Kota Bangun project will enable the group to enhance operational efficiencies there.
"The group now has over 65,000 hectares under management, and we expect to continue to increase output and achieve future growth, supporting the group's ambition to deliver progressive returns."
