KUALA LUMPUR: Oriental Holdings Bhd, controlled by the family of the late tycoon Tan Sri Loh Boon Siew, has acquired a 90% equity interest in Sumatra-based PT Surya Agro Persada from PT Kencana Sawit Abadi for RM98.32 million.
In a filing with Bursa Malaysia yesterday, Oriental Holdings (fundamental: 2.5; valuation: 2.4) said its indirect subsidiary OAM Asia (Singapore) Pte Ltd (OAMA) on Monday received a nod from Indonesia’s Ministry of Law and Human Rights for the stake acquisition.
OAMA is a wholly-owned unit of Oriental Boon Siew (Mauritius) Pte Ltd (OBSM), which in turn is a 50.5%-owned subsidiary of Oriental Holdings. The remaining 49.5% of OBSM is owned by Boon Siew Sdn Bhd.
Subsequent to the acquisition, OAMA now owns 90% of Surya Agro Persada and the remaining 10% is held by Kencana Sawit Abadi, said Oriental Holdings in a filing with Bursa Malaysia yesterday. Kencana Sawit Abadi is 99% owned by PT Tradisi Bina Usaha and 1% held by Ruddy Samuel.
Surya Agro Persada is involved in the cultivation of oil palm plantation. It holds a concession for parcels of land totalling 11,889ha in Rawas Llir and Muara Lakitan, South Sumatra.
“The parcels of land are located strategically next to the existing concession owned by another subsidiary of the group and will be cost effective,” said Oriental Holdings, adding that the acquisition will further enhance its plantation division’s contribution to the group’s performance in the future.
“Of the total land, more than 2,871ha have been planted and harvesting has started in some areas,” it added.
The group plans to fund the acquisition via bank borrowings.
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This article first appeared in The Edge Financial Daily, on March 4, 2015.