Guthrie to proceed with $368m Holdiko investment<\/p>\n
KUALA LUMPUR (AFX-ASIA): Kumpulan Guthrie Bhd. will proceed
\nwith its planned investment in the Holdiko Palm Plantations in
\nIndonesia despite opposition by the Indonesia Palm Oil Society,
\nits group chief executive Abdul Khalid Ibrahim said.<\/p>\n
\"We do not see any indication from IBRA (Indonesian Bank
\nRestructuring Agency) or the government of Indonesia not to
\ncontinue with the completion of this exercise,\" he told reporters
\nafter signing a 1.5 billion ringgit Islamic syndicated financing
\nfacility.<\/p>\n
He said it is quite common for certain parties in Indonesia to
\nprotest against the sale of assets by IBRA.<\/p>\n
\"There are quite a number of sentimental reasons for that
\nmainly because these assets are assets taken over by the
\ngovernment of Indonesia from the owners and not because the
\nowners have problems with their banking facilities, \" he added.<\/p>\n
Abdul Khalid said that when considering the investment,
\nKumpulan Guthrie was aware of such opposition from members of the
\nIndonesian community.<\/p>\n
\"Therefore, we must be contributive to the employees and the
\nsociety there,\" he said, adding that Kumpulan Guthrie will not
\nretrench or replace any of the existing staff in Holdiko.<\/p>\n
The Indonesian Palm Oil Society sent a letter on Dec. 7 to
\nPresident Abdurrahman Wahid urging him to cancel the sale of
\nSalim Group's plantations to Kumpulan Guthrie.<\/p>\n
PT Holdiko Perkasa, held by IBRA, has agreed to sell its
\nstakes in four palm plantation holding companies to Kumpulan
\nGuthrie.<\/p>\n
Abdul Khalid said Kumpulan Guthrie will pay IBRA US$368
\nmillion for the stakes in Holdiko on Dec. 22.<\/p>\n
He also said there is currently an arrangement between Holdiko
\nand Indofood to sell to the latter all the crude palm oil
\nproduced by the Holdiko plantation.<\/p>\n
Following Kumpulan Guthrie's acquisition of Holdiko, Abdul
\nKhalid said he does not see any problems in continuing the
\narrangement.<\/p>\n
He added that the 1.5 billion ringgit loan facility will place
\nKumpulan Guthrie in a highly geared position but \"with the
\nflotation and restructuring of Kumpulan Guthrie's assets, our
\nlong term borrowings will come down to a more manageable level.\"<\/p>\n
Kumpulan Guthrie has plans to set up a holding company to hold
\nthe Holdiko investment, to be subsequently listed on the Jakarta
\nStock Exchange.<\/p>\n
Abdul Khalid declined to provide details for the plans but
\nwould only say the listing will take place in three years.<\/p>\n
He also declined to provide details of Kumpulan Guthrie's
\nplans to raise $400 million worth of global Islamic bonds to
\nrefinance the Islamic loan facility.<\/p>\n
Details of the bond issue will be provided in a circular to
\nshareholders which is expected to be out next month.<\/p>\n
Asked how the Indonesian investment will reduce the overall
\ncost of Kumpulan Guthrie's plantation operations, Abdul Khalid
\nsaid: \"Based on the current statistics, for every ton of CPO
\n(crude palm oil) the (cost of production) is 200 ringgit cheaper
\nin Indonesia than in Malaysia\".<\/p>\n
He also said he expects the current overhang in the CPO market
\nto be settled next year, from which CPO prices are expected to be
\nat 1,200 ringgit to 1, 500 ringgit per ton.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/guthrie-to-proceed-with-368m-holdiko-investment-1447893297",
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"sponsor": "Okusi Associates",
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