Indofood to acquire 3 oil palm plantation firms

Jakarta (Antara News) - Publicly-listed Indofood Sukses Makmur (INDF) will acquire three oil palm plantation companies with a total value of Rp125 billion (US$12.5 million), a spokesperson said.

Indofood subsidiary PT Salim Ivomas Pratama (SIP) would carry out the acquisition using Idofood`s internally-generated cash, INDF director Thomas Tjhie said here Monday.

Salim Ivomas Pratama is engaged in the cooking oil and vegetable oil production sector.

PT Mega Citra Perdana (MCP), PT Mentari Subur Abadi (MSA) and PT Swadaya Bhakti Nagaramas (SBN) are the three firms which Indofood will acquire.

The three companies are affiliated to the Salim Group.

"Salim Ivomas Pratama will acquire 60 percent of total shares in the three firms. Rascal Holding Limited (RHL) is the selling agent of the three companies," Thomas said.

The Salim Group controls 100 percent of RHL which has 60-percent stakes in MCP, MSA and SBN with the remaining 40 percent controlled by the Salim Group.

The acquisition was aimed at widening Indofood`s oil palm plantation area.

"With its current area of plantations the corporation is only capable of supplying 50 percent of its refinery division`a demand for CPO," Thomas said.

INDF now only controlled 138,000 hectares of land of which 63,000 hectares were planted with oil palm.

"The oil palm plantation area will increase to 225,000 hectaress after the acquisition," he said.

Indofood planned to further expand its oil palm plantation area to 250,000 hectares in the future, Thomas said adding that the company`s CPO production would hopefully rise to one million tons per year.

"INDF targets the acquisition of 20,000 hectares of oil palm plantation area in 2007 and has earmarked US$20 million for it," he said.(*)
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