MP Evans acquires land adjacent to Simpang Kiri estate

6th Mar 2023 08:50

(Sharecast News) - Palm oil producer MP Evans has acquired additional planted land in Indonesia, adjacent to its Simpang Kiri estate in Aceh Province, Northern Sumatra.

MP Evans said on Monday that it had been successful in acquiring two Indonesian companies, PT Teunggulon Raya and PT Dharma Agung, which between them own 2,100 hectares planted with oil palm.

The AIM-listed firm stated that all the land being acquired was fully titled, with long leaseholds already established with the Indonesian government, in a similar way to its existing properties in the area.

Total costs associated with the acquisition, including the assumption of liabilities within the companies acquired, were estimated to be $14.3m, giving rise to a purchase cost of $6,800 per hectare.

Following the acquisition, MP Evans will have an expanded planted area of 4,800 hectares at or around the Simpang Kiri, and the potential to build its own palm-oil mill there.

Chairman Peter Hadsley-Chaplin said: "This is an excellent acquisition, fully in keeping with our stated strategy and supported by the strength of the group's balance sheet.

"Thanks to a combination of the good price at which it has been secured, and the added scale it gives the group around Simpang Kiri, these additional hectares are further fuel for the MP Evans growth engine."

As of 1340 GMT, MP Evans shares were up 0.15% at 821.20p.

Reporting by Iain Gilbert at Sharecast.com