JAKARTA (Rambu Energy) – The recently listed palm oil plantation firm PT Sawit Sumbermas Sarana Tbk [SSMS.JK] has signed conditional share purchase agreement to buy out PT Tanjung Sawit Abadi (TSA) and PT Sawit Multi Utama (SMU) for Rp 1.55 trillion or equal to US$129.5 million. Sumbermas Sarana acquired the shares through its subsidiary PT Kalimantan Sawit Abadi (KSA).
The transaction is considered as an internal acquisition since they key shareholder of Sawit Sumbermas Sarana and the two target companies is the same, namely PT Citra Borneo Indah (CBI).
Citra Borneo Indah holds 100 percent shares of PT Tanjung Sawit Abadi and also 100 percent in PT Sawit Multi Utama.
Citra Borneo Indah holds 26.4 percent shares in PT Sawit Sumbermas Sarana Tbk, PT PSB owns 13.6 percent, PT PBAL 13.6 percent, PT MIL 13.6 percent, Jery Borneo Putra 6.4 percent, Jemmy Adriyanor 8.4 percent and the public 15.7 percent.
Sawit Sumbermas Sarana said the completion of the acquisition is pending on the approval of the shareholders of PT Sawit Sumbermas Sarana as well as Tanjung Sawit Abadi and Sawit Multi Utama, scheduled for Dec. 22, 2014.
This transaction qualified for transaction with affiliated parties, therefore it will be conducted in accordance with Indonesian Company Law and Capital Market Law.
PT Tanjung Sawit Abadi has planted area of 10,462 hectares, while SMU owns 14.861 hectares of planted palm oil area. Tanjung Sawit Abadi has debts of Rp 370.23 billion, while Sawit Multi Utama’s debts stood at Rp 790.5 billion.
In the first nine months to September, Sawit Sumbermas posted net profit of Rp 47.64 billion as a result of higher production and improving profitability. Revenues during the period reached Rp 1.57 trillion, or up 23.53 percent compared to the same period last year.
Its gross margin and net profit margin expanded to 51.76 percent and 30.68 percent respectively. (*)