KLK acquires more than 90% stake in two oil palm firms for RM276.55mil.


PETALING JAYA: Kuala Lumpur Kepong Bhd (KLK) and its Singapore-incorporated wholly-owned subsidiary, KLK Plantations and Trading Pte Ltd, are acquiring more than a 90% stake in two Indonesian oil palm companies for a combined RM276.55mil.

In a filing with Bursa Malaysia, KLK said it is acquiring the stakes in the two companies from Whitmore Holdings Sdn Bhd, a wholly-owned subsidiary of Batu Kawan Bhd (which has a 47.72% stake in KLK).

In the related party transaction, KLK said it is acquiring a 92% stake in PT Satu Sembilan Delapan (SSD) for RM264.13mil and a 90% stake in PT Tekukur Indah (TI) for RM12.42mil.

“The estates under SSD and TI have been managed by KLK since their commencement of operations and KLK has good knowledge of these properties and their economic potential.

“The proposed acquisition will streamline and consolidate the plantation estates of the larger group under KLK,” it said.

The proposed acquisition is expected to be completed in the fourth quarter of 2023, subject to the fulfilment of all conditions of the conditional shares sale ad purchase agreements.

It will be satisfied by cash directed from its existing cash reserves, said KLK.

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KLK , plantations , Batu Kawan , acquisition

   

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