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.