Bumitama Agri to snap up 95% stake in GHL for $7.91m

It’s trying to bag a 2,982 ha oil palm plantation.

Bumitama Agri is getting ready to nab 95% stake in Gunajaya Harapan Lestari (GHL), which has a 2,982 ha oil palm plantation in Ketapang, West Kalimantan. The acquisition is worth IDR76.96m, or about $7.91m, and will be funded by Bumitama’s internal resources.

According to Bumitama Agri’s announcement, it entered the sale and purchase agreement with PT. Sukses Manunggal Sawitindo (SMS) and PT. Karya Manunggal Sawitindo (KMS).

The company asserted the deal is in line with Bumitama’s plan to boost the hectarage of its land bank. While the current book value and net tangible asset value of SMS is negative as GHL is currently immature, Bumitama intends to generate more income going forward from the plantation of GHL as the oil palm mature.

Moreover, GHL’s land is near the company’s land bank. The proximity allows for the company to improve operational efficiency by sharing labour and infrastructure resources.