MKH Plantation Expands Oil Palm Plantation Land in Indonesia

Kuala Lumpur | MKH Bhd, via its wholly-owned subsidiary MKH Plantation Sdn Bhd, has acquired a 75% equity interest in Indonesia-based PT. Sawit Prima Sakti (PTSPS) for RM 15 mil. In a filing with Bursa Malaysia on Friday, MKH said PTSPS owned about 2,445.49ha for oil palm plantation in East Kalimantan, Indonesia.

It said the rationale for the acquisition was to increase the size of its oil palm plantation, as the land is strategically located just beside the group’s existing oil palm plantation under PT. Maju Kalimantan Hadapan. MKH said this was in line with the group’s strategy to expand its existing oil palm plantation for potential future public listing purposes.

expands oil palm plantation land

“The oil palm plantation business will provide long-term stable income for the group,” it said.

MKH said the purchase was at a discount of about RM 2.48 mil, based on the adjusted market value of the plantation.

The company said the proposed acquisition was subject to business and operating risks inherent to the oil palm plantation sector that included, among others, approval from Badan Kordinasi Penanaman Modal (Investment Coordinating Board of Indonesia) and relevant competent authorities.

Other risks include the fluctuation in commodity prices, changes in the Indonesian export policies on crude palm oil, changes in weather conditions, fluctuation in oil palm prices correlates with the demand and supply of the vegetables oils and fats market.

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source: http://www.thestar.com.my/
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