SINGAPORE - A wholly owned subsidiary of Global Palm Resources Holdings will acquire a 95 per cent stake in PT Bumi Raya Agro for a total consideration of 23.6 billion rupiah (S$2.2 million), it said on Wednesday (Dec 12) before the stock market opened.
The purchase consists of a 94.98 per cent stake held by PT Bumiraya Utama, which is owned by Global Palm Resources executive chairman and chief executive officer Suparno Adjianto and his siblings, and a 0.02 per cent stake owned by one of the siblings, Swandono Adijanto.
Incoporated in Indonesia, PT Bumi Raya Agro is mainly engaged in the business of oil palm plantation and holds a location permit to about 10,100 hectares of oil palm plantation.
PT Bumi Raya Agro has yet to commence either the production or the sale of crude palm oil and palm kernels.
In its filing with the Singapore Exchange, Global Palm Resources said that the proposed acquisition will allow the company to expand its sources of revenue and its current business operations, including the group's geographical coverage in Kalimantan and overall rate of production of fresh palm fruit bunches.
Moreover, PT Bumi Raya Agro's oil palm plantation land will also increase Global Palm Resources's aggregate land bank available for future cultivation, it added.
Shares in Golden Palm Resources last traded on Nov 28 at 20 cents.