14th Jul 2025 11:27
(Alliance News) - MP Evans Group PLC on Monday said subsidiary PT Evans Indonesia has now completed its acquisition of two Indonesian plantation companies, to expand its presence in Indonesia.
The Tunbridge Wells, England-based producer of Indonesian crude palm oil bought PT Setara Kilau Mas Adicita and PT Sumber Bumi Serasi for a final gross consideration of USD35.1 million. This equates to USD12,600 per group-owned planted hectare.
MP Evans signed the conditional share purchase deal in mid-April, at which time it said it expected to pay a total of USD34.2 million, or USD12,500 per planted hectare.
The purchase was funded by existing cash resources and an initial payment of USD22.5 million was made upon completion, which includes adjustments for working capital and net debt acquired. MP Evans now anticipates repaying loans in the acquired companies totalling USD12.6 million.
It expects the acquisitions to be "immediately earnings enhancing", with the group maintaining "a strong, net cash balance sheet", the company said, enabling it to continue looking into opportunities for further growth.
Both companies will be managed as part of the Bumi Mas estate, and the crop from both properties will be sent for processing at the Bumi Mas mill.
SKMA and SBS both own oil-palm plantations in East Kalimantan, with a total planted hectarage of 2,750 hectares under direct ownership and a further 250 hectares managed on behalf of associated smallholder co-operatives.
"We are delighted to complete this transaction, in line with our strategic objectives," said MP Evans Chief Executive Officer Matthew Coulson.
"Adding the planted areas at SKMA and SBS will bring the total group-managed area at Bumi Mas to almost 12,000 hectares, enabling the group to make a significant difference to the utilisation of the on-site mill.
"The group now manages approximately 70,000 planted hectares across its Indonesian projects."
The two plantation companies are being acquired from PT Golden Land Gemilang, a subsidiary of Malaysian palm oil firm Golden Land Berhad. The purchase is also being made from minority shareholders Jeffrey Lachmandas Mahtani and Maurice Maulana Situmorang.
Shares in MP Evans were up 3.3% at 1,250.00 pence in London on Monday morning. The stock has risen 44% over the past year.
By Emily Parsons, Alliance News reporter
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