Guthrie to revamp RI subsidiary debt
Guthrie to revamp RI subsidiary debt
KUALA LUMPUR (AFX-ASIA): Kumpulan Guthrie Bhd said it is acquiring interests in plantation companies in Indonesia held by PT Holdiko Perkasa and PT Gemahripah Pertiwi (Holdiko Palm Plantations) as a going concern, and will restructure Holdiko Palm Plantations' existing bank borrowings upon completion of the proposed acquisitions.
In a statement to the Kuala Lumpur Stock Exchange, Kumpulan Guthrie said Holdiko Palm Plantations' current bank borrowings stand at about Rp 1.2 billion (about US$127,000)
It said it is unable to determine the vendors' original cost of investment in the companies to be acquired.
Kumpulan Guthrie on Nov 27 won a bid to acquire Holdiko Palm Plantations, which comprise Group A and Group B companies, all of which are involved in oil palm cultivation and processing.
PT Holdiko has a 20-21.6 percent interest in Group A companies and a 50-100 percent interest in Group B companies. Group A and Group B companies have combined interests in 265,776 hectares of plantation land in Indonesia.
PT Salim and PT Bhaskaramulti together hold a 20.0-21.6 percent stake in Group A companies, and the remaining shares of the Group A companies are held by Indofood Sukses Makmur Tbk.
The total purchase price for Group A companies is $38 million, the company said.
PT Minamas and PT Anugerah together hold a 50-100 percent stake in Group B companies, and the total purchase price for Group B companies is US$330 million.
The aggregate purchase price for the proposed acquisitions is $368 million. The company will borrow funds to pay for the acquisitions in cash, it said.
Kumpulan Guthrie said the proposed acquisitions will provide a good opportunity to expand its hectarage nearly three-fold, enabling it to become a dominant palm oil producer.
Completion of the proposed acquisition will result in economies of scale and an opportunity for the group to improve its yield and oil extraction ratio (OER) and venture into downstream activities, it said.
The move will also lower production costs.
The proposed acquisitions will not have any effect on Kumpulan Guthrie's share capital as it will be paid for in cash, and is also not expected to have any material effect on the group's earnings for the year to December 2000 but will contribute positively in the future.
The proposed acquisition is subject to the relevant approvals.