21/10/05 (The Edge Daily ) - Plantation firm PPB Oil Palms Bhd will buymajority stakes in two Indonesian palm oil plantation companies for morethan US$122 million (RM460 million) as it expands in Southeast Asia, thefirm said on Oct 21.

PPB, which is part of the Asian edible oils giant, the Kuok Group, saidits unit, Maxceed Pte Ltd, would pay about US$94 million for 95% of PTBenua Alam Subur, which aims to develop about 16,000ha of land in centralKalimantan as an oil palm plantation.

Another PPB unit, Quanta Pte Ltd, agreed to buy 95% of PT Hamparan SawitEka Malan for about US$28 million, PPB said. Hamparan plans to developabout 20,000ha of land in central Kalimantan as an oil palm plantation,PPB said.

"The purchases are part of PPB's long-term objective to expand its oilpalm operations in the region, taking advantage of suitable agriculturalland and labour resources," the firm told the Malaysian stock exchange ina statement.

"The land provides further economies of scale for the group's oil palmoperations in central Kalimantan, including the development of supportinginfrastructure."

PPB shares closed on Oct 21 up 1.3% at RM4.86. - Reuters