AEP Acquires PNGO for Rp2.8 Trillion, Obliged to Tender Offer for Remaining Shares

AEP Plantations Plc has acquired 98.3% of the shares in PT Pinago Utama Tbk (PNGO) for approximately US$162 million, equivalent to Rp2.8 trillion, on 4 May 2026. This information is crucial for investors as it reflects scale expansion and potential improvements in financial performance. According to the official RNS announcement from the London Stock Exchange (5/5), the acquisition was carried out through its wholly-owned subsidiary AEP Nusantara Holdings Ltd at a price of Rp3,584 per share.

The transaction covers 767.66 million shares from major shareholders and was completed on the same day. Funding came from the group’s internal cash reserves. PNGO owns approximately 15,400 hectares of palm oil plantations and 3,500 hectares of rubber plantations in South Sumatra, with integrated processing facilities. In 2025, PNGO recorded production of 105,000 tonnes of CPO from 161,000 tonnes of fresh fruit bunches (FFB) with an extraction rate of 22.7%, as well as net profit of around US$18 million.

PNGO is a listed agribusiness plantation company. AEP Plantations Plc is a UK-based agribusiness firm engaged in the ownership, management, and development of palm oil plantations in Indonesia and Malaysia. AEP Nusantara Holdings Ltd is a Hong Kong company wholly owned by AEP Plantations Plc.

Impact and Acquisition Strategy

AEP’s management stated that this acquisition is accretive to earnings and strengthens cash flow. The group’s CPO production is potentially set to increase by around 23%-25% following the consolidation of PNGO. This reflects significant expansion in the Indonesian market.

AEP’s Executive Director of Corporate Affairs, Marcus Chan, stated that the acquisition presents an opportunity to allocate cash to productive assets with strong earnings contributions. He added that this step significantly increases the scale of operations and strengthens the group’s ability to generate sustainable returns.

In accordance with Indonesian regulations, AEP will conduct a mandatory tender offer (MTO) for the remaining approximately 1.7% of public shares at an estimated price of Rp3,584 per share. Additional funding required is a maximum of around US$3 million, while the group’s financial structure remains solid.

Summary Table of PNGO Acquisition

Source: AEP, processed

Conclusion

AEP’s acquisition of PNGO reflects significant scale expansion in the plantation sector with potential increases in production and financial performance. The integration of assets will be an important factor monitored by the market. For investors, this move demonstrates AEP’s strengthened position in the regional palm oil industry and the growing role of Indonesian assets in its global portfolio.