16th May 2016 09:29
LONDON (Alliance News) - Indonesia-based palm oil producer REA Holdings PLC on Monday said it has struck a deal to sell a stake in its main operating subsidiary for USD16.8 million.
REA said PT Dharma Satya Nusantara Tbk, an Indonesian natural resources company, will acquire a 15% stake in REA's PT REA Kaltim Plantations operating subsidiary.
REA said the proposed investment in the business will bring "significant mutual benefits in terms of opportunities for more efficient sourcing of supplies, for marketing and through exchanges of information on agronomic practices."
In addition to the USD16.8 million for the stake, Dharma Satya Nusantara will lend REA Kaltim a total of around USD33.0 million under the agreement.
REA shares were up 3.2% at 294.00 pence on Monday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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