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JAKARTA - M. P. Evans Group PLC announced Monday it has completed the acquisition of two Indonesian plantation companies for US$35.1 million, expanding its palm oil operations in East Kalimantan.
The company acquired PT Setara Kilau Mas Adicita and PT Sumber Bumi Serasi, which together own 2,750 hectares of oil palm plantations and manage an additional 250 hectares on behalf of smallholder co-operatives.
The acquisition price equates to US$12,600 per planted hectare owned by the Group. An initial payment of US$22.5 million was made at completion, with adjustments for working capital and net debt acquired. The company plans to immediately repay US$12.6 million in loans held by the acquired companies.
The plantations, all planted since 2016, will be managed as part of M. P. Evans’ existing Bumi Mas estate, with crop from both properties to be processed at the Bumi Mas mill. The addition brings the total Group-managed area at Bumi Mas to nearly 12,000 hectares.
"We are delighted to complete this transaction, in line with our strategic objectives," said Matthew Coulson, M. P. Evans chief executive, in a press release statement.
The company indicated it would work to include the acquired areas in its registration with the Roundtable on Sustainable Palm Oil, consistent with its sustainability commitments.
M. P. Evans, which describes itself as a producer of sustainable Indonesian palm oil, now manages approximately 70,000 planted hectares across its Indonesian projects. The company stated it maintains a strong net cash balance sheet following the transaction and expects the acquisition to be immediately earnings enhancing.
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