KLK acquires over 90% stake in two Indonesian palm oil companies for RM277m
14.12.2023 (The Malaysian Reserve) - Kuala Lumpur Kepong Bhd (KLK) and its subsidiary, KLK Plantations and Trading Pte Ltd, are set to acquire over 90% stakes in two Indonesian oil palm companies, PT Satu Sembilan Delapan (SSD) and PT Tekukur Indah (TI), for a total of RM276.55 million.
KLK is acquiring these stakes from Whitmore Holdings Sdn Bhd, a subsidiary of Batu Kawan Bhd.
In a related party transaction, KLK will obtain a 92% stake in SSD for RM264.13 million and a 90% stake in TI for RM12.42 million.
The acquisition aims to streamline and consolidate the plantation estates under KLK, with completion expected in the fourth quarter of 2023, subject to conditions outlined in the sale and purchase agreements.
The funding for the acquisition will come from KLK’s existing cash reserves. –TMR