Guthrie to revamp RI subsidiary debt<\/p>\n
KUALA LUMPUR (AFX-ASIA): Kumpulan Guthrie Bhd said it is
\nacquiring interests in plantation companies in Indonesia held by
\nPT Holdiko Perkasa and PT Gemahripah Pertiwi (Holdiko Palm
\nPlantations) as a going concern, and will restructure Holdiko
\nPalm Plantations' existing bank borrowings upon completion of the
\nproposed acquisitions.<\/p>\n
In a statement to the Kuala Lumpur Stock Exchange, Kumpulan
\nGuthrie said Holdiko Palm Plantations' current bank borrowings
\nstand at about Rp 1.2 billion (about US$127,000)<\/p>\n
It said it is unable to determine the vendors' original cost
\nof investment in the companies to be acquired.<\/p>\n
Kumpulan Guthrie on Nov 27 won a bid to acquire Holdiko Palm
\nPlantations, which comprise Group A and Group B companies, all of
\nwhich are involved in oil palm cultivation and processing.<\/p>\n
PT Holdiko has a 20-21.6 percent interest in Group A companies
\nand a 50-100 percent interest in Group B companies. Group A and
\nGroup B companies have combined interests in 265,776 hectares of
\nplantation land in Indonesia.<\/p>\n
PT Salim and PT Bhaskaramulti together hold a 20.0-21.6
\npercent stake in Group A companies, and the remaining shares of
\nthe Group A companies are held by Indofood Sukses Makmur Tbk.<\/p>\n
The total purchase price for Group A companies is $38 million,
\nthe company said.<\/p>\n
PT Minamas and PT Anugerah together hold a 50-100 percent
\nstake in Group B companies, and the total purchase price for
\nGroup B companies is US$330 million.<\/p>\n
The aggregate purchase price for the proposed acquisitions is
\n$368 million. The company will borrow funds to pay for the
\nacquisitions in cash, it said.<\/p>\n
Kumpulan Guthrie said the proposed acquisitions will provide a
\ngood opportunity to expand its hectarage nearly three-fold,
\nenabling it to become a dominant palm oil producer.<\/p>\n
Completion of the proposed acquisition will result in
\neconomies of scale and an opportunity for the group to improve
\nits yield and oil extraction ratio (OER) and venture into
\ndownstream activities, it said.<\/p>\n
The move will also lower production costs.<\/p>\n
The proposed acquisitions will not have any effect on Kumpulan
\nGuthrie's share capital as it will be paid for in cash, and is
\nalso not expected to have any material effect on the group's
\nearnings for the year to December 2000 but will contribute
\npositively in the future.<\/p>\n
The proposed acquisition is subject to the relevant approvals.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/guthrie-to-revamp-ri-subsidiary-debt-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }