M.P. Evans Group Expands Indonesian Palm Oil Operations with Acquisition
Why we think this is good
The acquisition of additional planted hectares is in line with the Group's stated strategy and is expected to be earnings enhancing. While some financial details are unquantified, the transaction appears to be a positive step in the Group's growth plans.
Key Points
- Acquisition of two Indonesian plantation companies, PT Setara Kilau Mas Adicita and PT Sumber Bumi Serasi
- Adds 2,750 hectares of planted area to the Group's existing operations
- Further 250 hectares managed on behalf of associated smallholder co-operatives
- Total crop from acquired areas was 50,300 tonnes in the year to 30 June 2024
- Gross consideration of approximately US$34.2 million, funded from existing resources
- Acquisition expected to be earnings enhancing for shareholders
Summary
M.P. Evans Group PLC, a producer of sustainable Indonesian palm oil, has signed a conditional share purchase agreement to acquire the entire issued share capital of two Indonesian plantation companies, PT Setara Kilau Mas Adicita and PT Sumber Bumi Serasi. The acquisition will add 2,750 hectares of planted area to the Group's existing operations, with a further 250 hectares managed on behalf of associated smallholder co-operatives. The total crop from the acquired areas was 50,300 tonnes in the year to 30 June 2024. The gross consideration is expected to be approximately US$34.2 million, funded from the Group's existing resources. The acquisition is expected to be earnings enhancing for shareholders.