Malaysia's PPB to buy 2 Indonesian oil planters
Fri Oct 21, 2005
KUALA LUMPUR, Oct 21 (Reuters) - Malaysian plantation firm PPB Oil Palms Bhd (PPBO.KL: Quote, Profile, Research) will buy majority stakes in two Indonesian palm oil plantation companies for more than $122 million as it expands in southeast Asia, the firm said on Friday.
PPB, which is part of the Asian edible oils giant, the Kuok Group, said its unit, Maxceed Pte Ltd, would pay about $94 million for 95 percent of PT Benua Alam Subur, which aims to develop about 16,000 hectares (40,000 acres) of land in central Kalimantan as an oil palm plantation.
Another PPB unit, Quanta Pte Ltd, agreed to buy 95 percent of PT Hamparan Sawit Eka Malan for about $28 million, PPB said. Hamparan plans to develop about 20,000 hectares (49,000 acres) of land in central Kalimantan as an oil palm plantation, PPB said.
"The purchases are part of PPB's long term objective to expand its oil palm operations in the region, taking advantage of suitable agricultural land and labour resources," the firm told the Malaysian stock exchange in a statement.
"The land provides further economies of scale for the group's oil palm operations in central Kalimantan, including the development of supporting infrastructure."
PPB shares closed Friday up 1.3 percent at 4.86 ringgit. ($1=3.771 Malaysian Ringgit)
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