AP Land acquiring 95% stake in PT Primabahagia Permai Sejati

KUALA LUMPUR: Asia Pacific Land Bhd (AP Land) is acquiring 95% of the issued and paid-up capital in PT Primabahagia Permai Sejati (PT PPS), which has the location permit for a plot of 14,000 ha (34,594 acres) land in East Kalimantan for oil palm plantation.

In a filing to Bursa Malaysia on March 31, the developer had entered into a share sale and purchase agreement through its unit Global Hectare Holdings Pte Ltd on the same day with Anggunawan, Edy Lembono and Edy Supianto for the acquisition of the shares.

The 100% equity in PT Primabahagia Permai Sejati is valued at Rp31,482,500,000 (about RM11.3 million).

Anggun, EL and ES, private citizens of the Republic of Indonesia (“the Sellers”) are the existing shareholders in PT PPS and together hold 100% of the issued and paid-up share capital of PT PPS comprising of 100 shares, each having a nominal value of Rp1,000,000.

AP Land proposes to utilise part of the cash proceeds of RM680 million realised from the earlier disposal of City Square Centre and from external borrowings to finance the acquisition.

The acquisition will give the group the opportunity to expand its oil palm plantation division and is in line with the group’s strategic plan to broaden its long-term income stream with recurring resource-based revenue.

“This investment will also allow the group to tap into the promising prospects of the palm oil industry, in view of the rising global demand for palm oil,” the company said.