14/10/05 KUALA LUMPUR, (Asia Pulse) - PPB Oil Palms Berhad said itswholly-owned subsidiary, Stephigh Pte Ltd, today signed an agreement toacquire a 95 per cent stake in PT Alam Sawit Permai.
Stephigh will buy 950 shares of Rp 1 million each for cash at par,equivalent to a total consideration of 950 million rupiah (US$93,781), PPBOil Palms said in a statement to Bursa Malaysia.
Alam Sawit proposes to develop up to 16,160 hectares of land in SeruyanRegency, Central Kalimantan into an oil palm plantation, subject toreceipt of all relevant approvals for conversion of the land foragricultural production land use and issue of the relevant licences.
The proposed acquisition is conditional on the approval of the IndonesianInvestment Coordinating Board (BKPM) for the change in shareholding andconversion of Alam Sawit to a foreign capital investment (PMA) company,and any other relevant government authorities.
The statement said the proposed acquisition is part of PPB Oil Palms' longterm objective to expand its oil palm operations in the region, takingadvantage of suitable agricultural land and labour resources.
The Alam Sawit land would provide further economies of scale for the PPBGroup's oil palm operations in Central Kalimantan including thedevelopment of supporting infrastructure, it added. - ASIA PULSE