First Resources' subsidiary splurged Rp4.9b in acquisition of associated firm

It acquired 49% stake in PT SAJ.

In a release, First Resources Limited announced that its indirect subsidiary, PT Pancasurya Agrindo, has acquired 49% interest in PT Setia Agrindo Jaya. The consideration for the Acquisition of Rp4.9 billion (approximately US$0.4 million) was paid in cash and financed by internal resources.

PT SAJ owns 99.99% interest in PT Citra Palma Kencana, PT Indo Manis Lestari, PT Indogreen Jaya, PT Setia Agrindo Lestari and PT Setia Agrindo Mandiri. Following the Acquisition, PT SAJ and its subsidiaries are now indirect associated companies of the Company.

PT SAJ and its subsidiaries are incorporated in Indonesia and principally engaged in the development of oil palm plantations.

The Acquisition does not constitute a discloseable transaction under the provisions of Chapter 10 of the Listing Manual of the SGX-ST and is not expected to have any material impact on the net tangible assets and earnings per share of the Company for the current financial year.

None of the directors of the Company has any interest, direct or indirect, in the Acquisition.