First Resources Limited’s EB5 indirect subsidiary, PT Karya Tama Bakti Mulia, has successfully bid for the acquisition of plantation assets held by PT Tri Bakti Sarimas for a cash consideration of IDR1.9 trillion ($164.9 million) on Jan 17.
The assets comprise mills, plantations and unplanted land bank covering a total site area of approximately 17,600 hectares located in Riau Province, Indonesia, and was concluded on 28 Dec 28, 2023 via a public auction.
The purchase price 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.
First Resources says the addition of these plantation assets marks a significant step in its expansion strategy. “This acquisition not only enhances the company’s operational footprint in the plantation industry but also aligns with its commitment to sustainable and profitable growth.”
The company anticipates that the integration of these assets will yield operational synergies and contribute positively to its overall performance, reinforcing the its position in the market and enhancing shareholder value.
The acquisition was funded by internal resources and is not expected to have any material impact on the consolidated net tangible assets and earnings per share of the company for the FY2023 ended Dec 31, 2023.
See also: Interra Resources granted 12-month extension to meet SGX watch-list exit requirements
Shares in First Resources EB5 closed 1 cent higher or 0.68% up at $1.49 on Jan 17.
