Equatorial Palm Oil announces JV with KLK Agro Plantations

11th Apr 2014 15:05

Equatorial Palm Oil's shares rose after the Liberia-focused company announced a joint venture agreement with KLK Agro Plantations.The deal is in relation to the operations and funding for KLK's 50% owned joint venture company Liberian Palm Developments (LPD).LPD will receive up to $35.5m in cash and funding commitments. KLK has agreed to provide any further funding required by LPD up to a maximum of $20.5bn.Geoffrey Brown, Executive Director of Equatorial Palm Oil, said: "We are very pleased to have now signed the new Joint Venture agreement with KLK Agro which has secured over $35m of funds for the development of our oil palm estates in Liberia. KLK, as one of the world's largest plantation companies, will bring their enormous and varied experience to our estates and help us achieve the great potential in order to drive value for all shareholders."Shares rose 25% to 11.25p at 15:26 on Friday.RD