Sime buys oil palm estates in PNG

PETALING JAYA: Sime Darby Plantation Bhd’s wholly owned unit, New Britain Palm Oil Ltd (NBPOL), has acquired two oil palm estates in Markham Valley, Papua New Guinea, for US$52.6mil (RM215.6mil).

The company said NBPOL had completed the purchase of Markham Farming Co Ltd (MFCL) from Singapore-based Markham Agro Pte Ltd on Aug 23. Under the deal, NBPOL will also assume the two companies’ outstanding debts amounting to US$11mil.

“The final purchase consideration and the eventual total cash outlay to be paid by NBPOL will be subject to the findings of a post-completion audit,” Sime Darby Plantation told Bursa Malaysia.

The two estates in Markham Valley have a combined total plantable area of about 5,713ha, of which about 4,018ha have been planted with oil palm trees.

“The oil palm plantation is located close to Lae, Papua New Guinea’s largest port, and has the ability to integrate with NBPOL’s existing supply chain,” the company said.

MFCL is also the largest coconut oil exporter in Papua New Guinea with two copra mills in Buka and Madang.

The acquisition, it said, would enable the group to expand its lauric oils business into coconut oil production.