Expanding palm oil producer, Asian Plantations Limited, has entered a conditional agreement to acquire the entire issued share capital of Jubilant Paradise Sdn Bhd , and its wholly owned subsidiary, Incosetia Sdn Bhd (the “Jubilant Group”), which owns a partly developed palm oil plantation totalling approximately 5,850 hectares in Sarawak, Malaysia,
The total consideration for the Proposed Acquisition at this time is £12.4 million to be payed in three tranches December 31, 2009 with the balance payable on completion by no later than 31 January 2010. The move represents the view of Asian Plantations that greater palm oil property will be required to support the growing demand for the product. Palm oil has been steadily expanding Westward after centuries of regular use in the East. Palm oil is already the world’s most popular edible oil.
The expansion is close to the existing property at less than 5 kilometres from the existing estate. The Incosetia Estate consists of 1,000 hectares of planted land, with palms of approximately three years of age. In respect of the unplanted land, nursery operations are expected to commence in the first quarter of 2010, thereby enabling in-the-ground planting on the remaining 4,850 hectares to occur within 12 months of completion of the Proposed Acquisition. Mature palm oil land is a very valuable commodity with high turnover rates making and acquisition of land a boon for Asian Plantations limited. The company’s directors believe that the Proposed Acquisition offers a variety of strategic benefits to APL, including promoting immediate revenue generation and achieving their initial goal of increasing the scale of the Company’s existing operations to approximately 10,635 hectares of plantation land by the 2010. About Asian Plantations Limited
Asian Plantation Limited is a Singapore incorporated company with 100 % owned Malaysian subsidiaries involved in the acquisition and development of palm oil plantation land in Sarawak, Malaysia. The company’s business strategy is to acquire under-priced, properly zoned agricultural land, which can be developed into high quality mature palm oil estates. The company became listed on the AIM (London Stock Exchange) in 2009.
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