MARKET DEVELOPMENT
KLK Makes Foray Into Liberia
KLK Makes Foray Into Liberia
08/11/2013 (Business Times) - Kuala Lumpur Kepong Bhd (KLK), one of Malaysia's top five plantation companies, has made its maiden venture into Liberia to expand its oil palm land beyond Malaysia and Indonesia.
KLK yesterday said it had sealed a cash deal with Singapore's Biopalm Energy Ltd to buy a 50 per cent stake in Liberian Palm Developments Ltd for US$17.4 million (RM55.3 million) and a 20.1 per cent stake in Equatorial Palm Oil Plc for US$3.2 million.
"The acquisition is in line with KLK's strategy to expand its plantation landbank outside Malaysia and Indonesia for geographical diversification into the West African nation where there is a net deficit of edible oils.
"Liberia Palm's concession land is also agronomically suitable and located within 50km of deep-water ports," KLK said in a filing to Bursa Malaysia.
Liberian Palm is Mauritius-incorporated company. The remaining 50 per cent stake is held by Equatorial, which is listed on the London Stock Exchange's Alternative Investment Market and engaged in Liberia's business of oil palm plantations via its 50 per cent equity interest in Liberian Palm.
The proposed acquisition will be financed by KLK's internally generated funds and is set to be completed in two weeks.
Liberia Palm's subsidiaries hold two 50-year concessions with 45 years remaining awarded by the Liberian government to rehabilitate and develop 25,547ha oil palm plantations, of which 3,750ha have been planted.
A further 61,111ha have been earmarked for future joint expansion.
KLK yesterday said it had sealed a cash deal with Singapore's Biopalm Energy Ltd to buy a 50 per cent stake in Liberian Palm Developments Ltd for US$17.4 million (RM55.3 million) and a 20.1 per cent stake in Equatorial Palm Oil Plc for US$3.2 million.
"The acquisition is in line with KLK's strategy to expand its plantation landbank outside Malaysia and Indonesia for geographical diversification into the West African nation where there is a net deficit of edible oils.
"Liberia Palm's concession land is also agronomically suitable and located within 50km of deep-water ports," KLK said in a filing to Bursa Malaysia.
Liberian Palm is Mauritius-incorporated company. The remaining 50 per cent stake is held by Equatorial, which is listed on the London Stock Exchange's Alternative Investment Market and engaged in Liberia's business of oil palm plantations via its 50 per cent equity interest in Liberian Palm.
The proposed acquisition will be financed by KLK's internally generated funds and is set to be completed in two weeks.
Liberia Palm's subsidiaries hold two 50-year concessions with 45 years remaining awarded by the Liberian government to rehabilitate and develop 25,547ha oil palm plantations, of which 3,750ha have been planted.
A further 61,111ha have been earmarked for future joint expansion.