5th May 2026 09:22
(Alliance News) - AEP Plantations PLC on Tuesday announced the acquisition of 98% of Indonesian agribusiness PT Pinago Utama Tbk for around USD162 million.
The operator of sustainable palm-oil plantations in Indonesia and Malaysia said the deal, via its wholly owned subsidiary AEP Nusantara Holdings Ltd, will be funded from existing cash resources.
Pinago is listed on the Indonesia Stock Exchange, with operations located in South Sumatra.
In 2025, Pinago reported revenue of USD135 million, pretax profit of USD24.5 million and profit after tax of USD18 million.
AEP Plantations said the deal will be immediately earnings-enhancing and increase crude palm oil production by 25%.
Shares in AEP Plantations rose 7.2% to 1,908.72 pence each in London on Tuesday.
AEP Executive Director of Corporate Affairs, Marcus Chan said the acquisition represents an "attractive opportunity" and "meaningfully increases our scale."
The deal was finalised on Monday.
Under Indonesian regulations, AEP is required to make a mandatory tender offer for the rest of Pinago's share capital. This is expected to cost a maximum USD3 million.
By Jeremy Cutler, Alliance News reporter
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