KUALA LUMPUR, Dec 14 — Kuala Lumpur Kepong Bhd’s (KLK) Singapore-incorporated wholly-owned subsidiary, KLK Plantations and Trading Pte Ltd (KLKPT), has entered into two conditional share sale and purchase agreements with Whitmore Holdings Sdn Bhd for the acquisition of stakes in two Indonesian palm oil companies.
Whitmore is a wholly-owned subsidiary of Batu Kawan Bhd, which in turn is a major shareholder of KLK, holding a 47.7 per cent stake in KLK.
KLKPT is to acquire 262,200 shares, or 92 per cent of PT Satu Sembilan Delapan (SSD), for 880.43 billion rupiah (about RM264.18 million). It is also to acquire 43.2 million shares, or 90 per cent equity interest in PT Tekukur Indah (TI), for 41.40 billion rupiah (about RM12.42 million).
“The proposed acquisition is expected to be completed in the fourth quarter of 2023,” KLK said in a filing with Bursa Malaysia on Thursday.
SSD has been granted oil palm cultivation rights, which comprises 5,676 hectares (ha), of which 5,384 ha is planted, located at East Kalimantan, Indonesia. The cultivation rights held by SSD will expire in 2044.
TI holds cultivation rights for the development of an oil palm plantation covering 1,497 ha, located at East Kalimantan, Indonesia which will expire in 2055.
KLK said “the estates under SSD and TI have been managed by KLK since their commencement of operation and KLK has good knowledge of these properties and their economic potential.”
“The proposed acquisition will streamline and consolidate the plantation estates of the larger group under KLK. Furthermore, the proposed acquisition will be a source of feedstock for KLK’s upcoming refinery and oleo complex in East Kalimantan due to its proximity,” it added. — Bernama
