M. P. EVANS GROUP PLC
("MPE" OR "THE GROUP")
Investment in new Indonesian oil-palm project
Further to the announcement made on 29 August 2017, the board is pleased to announce that Sungkai Holdings Limited, a subsidiary of MPE, has completed its acquisition of Sunrich Plantations Pte Ltd ("Sunrich"), which owns 95% of an Indonesian company, PT Bumi Mas Agro ("BMA"), which in turn owns an oil-palm plantation in Indonesia.
The land acquired by the Group comprises 8,240 hectares. Of this area, 7,800 hectares are young oil palms, planted mainly in 2012-17. In addition to the land acquired by the Group, as required by law in Indonesia, a smallholders' scheme is in operation. Some 1,300 hectares have already been planted and allocated to the scheme which, ultimately, should comprise 20% of the total planted area. Soil conditions, vegetation, terrain and climate are highly suitable for oil-palm development.
The Group has paid an initial US$40.0 million in cash to acquire Sunrich, which is a privately-held Singapore company. This will be followed by US$49.2 million in deferred cash consideration (based on BMA's debt at completion, and subject to final working capital adjustment), the timing of which is dependent on the receipt of routine Indonesian regulatory approvals but expected to be paid in the near term.
This announcement contains inside information.
MPE Chairman, Peter Hadsley-Chaplin, commented as follows:-
''The completion of the BMA acquisition is another noteworthy step in the Group's expansion of plantation hectarage under its control. MP Evans will bring its operating expertise to bear on BMA, whose young palms can be expected to produce strong crop growth in the coming years. Crop growth underpins the Group's intention to produce increasing volumes of crude palm oil and palm kernels at attractive margins."
M.P. Evans Group PLC Telephone: +44 (0) 1892 516333
Peter Hadsley-Chaplin, Chairman
Tristan Price, Chief Executive
Matthew Coulson, Finance Director
Peel Hunt LLP Telephone: +44 (0) 20 7418 8900
Hudson Sandler Telephone: +44 (0) 20 7796 4133
This information is provided by RNS