MARKET DEVELOPMENT
KL-Kepong Plantation Enters JV Agreement With AALI
KL-Kepong Plantation Enters JV Agreement With AALI
11/11/2014 (Bernama) - KL-Kepong Plantation Holdings Sdn Bhd, a subsidiary of Kuala Lumpur Kepong Bhd (KLK), has entered into a joint venture agreement with PT Astra Agro Lestari Tbk (AALI).
In a filing to Bursa Malaysia today, KLK said under the joint venture agreement, AALI would become a 50 per cent shareholder of KLK's joint venture company in Indonesia, PT Kreasijaya Adhikarya, which is involved in refinery and trading of palm oil refined products.
"With the entry of AALI as a 50 per cent shareholder of the joint venture company, it shall cease to be a subsidiary of KLK," said the company.
The shareholders of PT Kreasijaya are KL-Kepong Plantation, which holds 6,175 shares, and Al Hakim Hanafiah, who holds 325 shares.
KLK said the proposed transaction, expected to be completed in the first quarter of 2015, was intended to leverage synergies from both parties' expertise in the plantation industry.
In a filing to Bursa Malaysia today, KLK said under the joint venture agreement, AALI would become a 50 per cent shareholder of KLK's joint venture company in Indonesia, PT Kreasijaya Adhikarya, which is involved in refinery and trading of palm oil refined products.
"With the entry of AALI as a 50 per cent shareholder of the joint venture company, it shall cease to be a subsidiary of KLK," said the company.
The shareholders of PT Kreasijaya are KL-Kepong Plantation, which holds 6,175 shares, and Al Hakim Hanafiah, who holds 325 shares.
KLK said the proposed transaction, expected to be completed in the first quarter of 2015, was intended to leverage synergies from both parties' expertise in the plantation industry.