MALAYSIAS IOI CORP BUYS STAKES IN SARAWAK OIL PALM PLANTATIONS
IOI Corporation Berhad Tuesday said it has signed agreements to acquire stakes in several companies in oil palm plantation in the east Malaysian state of Sarawak for RM439, 852203 (US $ 139 million).
IOI’s effective participation in the plantation lands owned by corporations is equivalent to 65 per cent in terms of value, with the balance mainly held by the Land Custody and Development Authority (LCDA) and local people.
“The ownership structure would allow IOI to lead and manage the affairs and planting for the state and local people to participate in the company’s success, providing long-term benefits for the local community,” he said in a statement to Bursa Malaysia on 18 March.
IOI Corp said the entity acquired companies have a combined land planting of 44350 hectares, of which 13500 hectares are planted with oil palm.
About 4500 hectares, or 33 percent of the area planted was already mature, while the remaining 9000 hectares will be gradually ripens.
IOI Group intends to gradually expand the 30850 ha remaining non-areas planted with oil palm plantations in the coming years.
The purchase was obtained under consideration, taking into account the present value of the planting of 44350 hectares of land, of which 13500 hectares are planted, and a 60MT per hour palm oil.
The IOI Group, which is the second largest oil palm plantation listed group currently has a plantation in the land holding of 169450 ha in Malaysia (149000 hectares are planted), and another in Indonesia, 152000 ha ( 43000 ha of which are planted) via a joint venture.
The proposed acquisition will increase the group’s holding plantation 213800 ha in Malaysia and 365800 global hectares.
“It will make an immediate contribution of revenues from the area which is already mature, as well as additional resources for the plantation expansion in the coming years, allowing the group to capitalize on the strong growth for the industry of palm oil, “said the statement.
