Bakrie Sumatera to sell new shares

Bakrie Sumatera to sell new shares

JAKARTA: PT Bakrie Sumatera Plantations, which has about 30,000 hectares of oil-palm plantations in Indonesia, expects to raise as much as Rp 218 billion (US$24 million) in a sale of new shares to expand its business.

The sale, slated for the fourth week of this month, will be used to fund the purchase of plantation companies, the building of a mill and to pay debt, Bakrie Sumatera said in a media statement.

Indonesia, the world's biggest oil-palm grower after Malaysia, last year produced about 9.9 million tons of palm oil, exporting 6.5 million tons. The oil is used to make cooking oil and chemicals in soaps and detergents.

Bakrie Sumatera will sell as many as 1.1 billion new shares in the offering, with each rights share priced at 200 rupiah, the statement said. -- Bloomberg