Tuesday, November 23 2004 - PLANTATION company Kuala Lumpur Kepong Bhd(KL Kepong) is acquiring a 75 per cent stake in PT Hutan Hijau Mas (PTHHM)in a move to increase its oil palm plantation area.

It forms part of KL Kepong’s long-term objective to expand its oil palmoperations in Indonesia to take advantage of suitable agricultural landand labour.

KL Kepong’s wholly-owned subsidiary KL Kepong (Mauritius) InternationalLtd has entered into a conditional sale and purchase agreement (S&P) toacquire the stake from Abraham Adiasa for a cash consideration of US$1.5million (US$1 = RM3.80).

PTHHM holds a certificate of Izin Lokasi for 20,000ha in Berau, EastKalimantan, which it intends to develop into oil palm plantations.

KL Kepong, in a statement to Bursa Malaysia Bhd, said the purchase will befinanced with internally-generated funds. A sum of US$525,000 has beendeposited with Abraham Adiasa as part payment for the purchase.