7/23/04 (Oilmandi) - Malaysia's biggest plantation firm by market value,IOI Corp , said on Thursday it had agreed to buy a palm oil refiner for$24 million to expand its specialty fats business. IOI's wholly ownedDutch unit, Loders Croklaan Group, a vegetable oils refiner, will pay 2.05million ringgit cash and assume 87.14 million ringgit ($22.9 million) ofdebt to purchase Soctek Sdn Bhd from Singapore's Ugreat Holdings Pte Ltd.

"The proposed acquisition provides Loders Croklaan with a competitivemanufacturing base in Asia," IOI said in a statement to the stockexchange.

IOI said it would finance the purchase of Soctek, which is based in thesouthern state of Johor, with internal funds and bank borrowings.

Shares of IOI last traded 0.6 percent down at 8.25 ringgit, before tradingwas suspended for the announcement.