AP Land ventures into Indonesia palm oil sector

Property developer Asia Pacific Land Bhd (AP Land) is entering the oil palm sector in Indonesia.

This follows the move by its subsidiary Mount Pleasure Investments Pte Ltd (MPI) to acquire PT Tunas Prima Sejahtera (TPS) of Indonesia.

AP Land has entered into a conditional share sale and purchase and subscription of new shares agreement (CSPA) with Halim Jawan and Rubiyanto to buy 95 per cent of TPS for Rp.190 million (RM68,500) cash. It will also subscribe for new shares of 49,800 shares with a total nominal value of Rp. 49.8 billion (RM18 million).

It is expecting to complete the deal in the first quarter of 2009.

Upon completion of the proposed acquisition, MPI will hold a 95 per cent equity in TPS and Halim the remaining five per cent.

TPS intends to cultivate oil palm on a 20,000-hectare land in Desa Hambau, Loa Sakoh, Genting Kutai Kartanegara in East Kalimantan.

The total land cost is estimated at US$4.7 million (RM16 million).

By New Straits Times