Header-farmlandgrab-en3
Icon-globe   Icon-fb   Icon-twitter   Icon-rss  
Home About events Gallery Publish
Subscribe
Help

Who's involved?

Archives

Languages

Special content

Malaysia's KL Kepong acquires Liberian palm oil operations
Published: 07 Nov 2013
Posted in:  EPO | KLK | Liberia | Sivasankaran
Comments (0) Print Email this

Reuters | 7 November 2013
Image: My Palm Oil

Malaysia's KL Kepong acquires Liberian palm oil operations

Nov 7 (Reuters) - Malaysia's third-largest listed plantation company, Kuala Lumpur Kepong Bhd, said it had agreed to a $21.3 million cash acquisition to gain a foothold in the palm oil sector in Liberia.

KL Kepong has agreed to buy a 20.1 percent stake in London-listed Equatorial Palm Oil PLC and a 50 percent stake in Liberian Palm Developments Ltd, both from Singaporean palm oil producer and exporter Biopalm Energy Limited, it said in a stock exchange filing on Thursday.

Listed palm oil firms in Malaysia and Singapore have turned increasingly to Africa to set up operations as land in top producer Indonesia is becoming scarce after years of rapid development.

"The proposed acquisition is in line with KL Kepong's strategy to expand its plantation landbank outside Malaysia and Indonesia for geographical diversification into the West African region, where there is a net deficit of edible oils," the company said.

The remaining 50 percent in Liberian Palm Developments is owned by Equatorial Palm Oil.

KL Kepong will also take on Liberian Palm Developments' $608,000 loan from Biopalm Energy.

Liberian Palm Developments holds two 50-year concessions in Liberia covering 25,547 hectares.

--
StockMarketWire.com | 7 November 2013

EPO to receive $2m loan from KLKB

Equatorial Palm Oil has entered various agreements relating to a loan and liability assignment arrangement with Kuala Lumpur Kepong Berhad.

In addition, KLK has entered into various arrangements with Biopalm Energy Limited, including the proposed acquisition of its 50% stake in Liberian Palm Developments and 20.1% interest in EPO at a price of 5 pence per ordinary share.

Under the terms of the Agreements, KLK will provide a loan of $2m to EPO's 50%-owned joint venture company, LPD.

In addition, for a consideration of $2m payable to the Company, EPO has agreed to assign to KLK $6m of the outstanding liabilities due to EPO from LPD.

Simultaneously with the Company entering into the Agreements, EPO has also agreed to provide a loan of $2m to LPD. Subsequent to the Assignment and the EPO Loan, the total liabilities owed to EPO by LPD amount to $5.1m.
Source: Reuters



Post a comment
Name

Email address (optional - if you want a reply)

Comment

Who's involved?

22 Sep 2015 - Singapore
Global AgInvesting Asia



Languages



Archives