M.P. Evans expands Indonesian palm oil operations with new acquisition

LONDON - M.P. Evans Group PLC, a leading producer of sustainable Indonesian palm oil, has announced the acquisition of two Indonesian plantation companies for US$34.2 million, enhancing its operational footprint and production capabilities. The deal, involving PT Evans Indonesia, a wholly-owned subsidiary of the Group, will see the purchase of PT Setara Kilau Mas Adicita and PT Sumber Bumi Serasi, adding 2,750 hectares of oil-palm plantations to its current holdings.

The transaction, funded from existing cash resources, is in line with M.P. Evans’ strategic goal of expanding its planted hectarage in proximity to its existing operations. The acquired plantations are situated near the Group’s Bumi Mas estate and mill in East Kalimantan and include an additional 250 hectares managed on behalf of smallholder co-operatives. The areas under acquisition produced a total crop of 50,300 tonnes in the year to June 30, 2024, with expectations of increased yields in the coming years due to the plantations’ relatively young age, having been planted since 2016.

Following completion, anticipated in the third quarter of 2025, the acquired plantations will be integrated into the Bumi Mas estate’s management, with all crops processed at the Bumi Mas mill. The purchase price translates to US$12,500 per Group-owned planted hectare, and the acquisition is expected to be earnings enhancing for shareholders.

The seller, PT Golden Land Gemilang, is a subsidiary of the Malaysian-listed company Golden Land Berhad, which operates in the Indonesian oil-palm sector. Minority shareholders Jeffrey Lachmandas Mahtani and Maurice Maulana Situmorang are also part of the transaction.

In line with its commitment to sustainable production, M.P. Evans plans to include the newly acquired areas in its registration with the Roundtable on Sustainable Palm Oil (RSPO). The Group’s chairman, Peter Hadsley-Chaplin, expressed that the addition of SKMA and SBS will bring the total Group-managed area at Bumi Mas to nearly 12,000 hectares, significantly optimizing the mill’s utilization. Post-acquisition, the Group will manage almost 70,000 planted hectares across its Indonesian projects.

The information in this article is based on a press release statement. The disclosed acquisition aligns with the company’s growth strategy and its dedication to sustainable practices, reinforcing its position in the palm oil industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.