Further to the announcement on 29 August 2017, the board is pleased to announce that Sungkai Holdings, a subsidiary of MPE, completed its acquisition of Sunrich Plantations.
Sunrich Plantations owns 95% of an Indonesian company, PT Bumi Mas Agro (BMA), which in turn owns an oil-palm plantation in Indonesia.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 paid an initial $40m in cash to acquire Sunrich, which is a privately-held Singapore company. This will be followed by $49.2m 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.