24th Mar 2005 07:00
Anglo-Eastern Plantations PLC24 March 2005 ANGLO-EASTERN PLANTATIONS PLC ACQUISITION OF RIGHTS TO LAND Anglo-Eastern Plantations, which owns approximately 31,000 hectares (ha) ofplantations, primarily of oil palm in Indonesia, has completed the acquisitionof rights over 4,800 hectares of vacant land, known as Labuhan Bilik, in theprovince of North Sumatra, Indonesia, near to the east coast, about 130km northof its existing main Tasik Estate. These land rights are owned by PT Hijau Pryan Perdana (HPP), 80% of which hasbeen acquired by Anglo-Eastern for a consideration of $320,000. The balance of20% has been acquired for a pro rata consideration by one of Anglo-Eastern'slong standing local Indonesian partners who will fund his share of furtherdevelopment alongside Anglo-Eastern. Conversion of the land rights into aconfirmed land title will take between one and two years and requiresdevelopment to have commenced in the interim. Development of this area into an oil palm estate is likely to begin in 2006,funded initially from the group's own resources. Production is expected tocommence in 2009/10. This acquisition will have no effect on group profits for 2005. Following completion in 2006 of the planting of Anglo-Eastern's 17,000hadevelopment in the province of Bengkulu in southern Sumatra, which was startedin 1997 and is now maturing, HPP will form the base for the next phase ofAnglo-Eastern's expansion. Following grant of the HPP land title, Anglo-Eastern's total land area will be45,000ha, of which 31,000ha are at present planted. Note for editors: Oil palms begin producing fruit about 3 years after planting, reach maximumproduction after about 10 years and have an economic life of about 25-30 years. Enquiries: Anglo-Eastern Plantations Plc 020-7236 2838Rollo Barnes (Financial Director) Bankside Consultants LimitedCharles Ponsonby 020-7444 4166 / 07789-202 312 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Anglo-Eastern Plantations