First Resources announced that its indirect subsidiary, PT Karya Tama Bakti Mulia, has successfully bid for the acquisition of plantation assets held by PT Tri Bakti Sarimas for a consideration of IDR 1.9 trillion ($162.9 million).
The Acquisition involves mills, plantations and unplanted land bank covering a total site area of approximately 17,600 hectares located in the Riau Province, Indonesia, and was concluded on 28 December 2023 via a public auction conducted through the State Assets and Auction Service Office under the Directorate General of State Assets for the execution of mortgage rights held by PT Bank Rakyat Indonesia (Persero) Tbk (Bank BRI).
The consideration amount was arrived at based on the auction reserve price, which was set by Bank BRI after taking into consideration the most recent valuation performed by its appointed independent appraiser.
In its announcement, the group said that this acquisition marks a significant step in its expansion strategy. It not only enhances its operational footprint in the plantation industry but also aligns with its commitment to sustainable and profitable growth.
The group anticipates that the integration of these assets will yield operational synergies and contribute positively to its overall performance, reinforcing the Company’s position in the market and enhancing shareholder value.
This acquisition was funded by internal resources and not expected to have any material impact on the group’s FY2023 ended Dec 31, 2023, financials.
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Shares in First Resources EB5 closed at $1.44 on Jan 5.
