M. P.
EVANS GROUP PLC
("THE
GROUP")
PURCHASE
OF MINORITY INTERESTS
M.P. Evans Group PLC, a producer of
sustainable Indonesian palm oil, is pleased
to announce that it has completed the purchase of the 5% minority
holding in the majority (70% by Group-owned planted hectarage) of
its Indonesian subsidiary trading companies.
The acquisition has been made by the
Group's wholly owned subsidiary, P.T. Evans Indonesia, and
encompasses the 5% shareholdings in the Group's estates at Kota
Bangun, the Pangkatan group, Bumi Mas, Musi Rawas and Simpang Kiri
held by Praba Madhavan P.A. Madhavan. Following the transaction,
the only remaining location in which there is a minority interest
is the Group's estate at Bangka where the Group has a 10% minority
partner.
The total cost of the purchase was
US$14.0 million, based on an agreed price of US$9,000 per planted
hectare, adjusted for other assets and liabilities in the relevant
subsidiary companies and was funded from the Group's existing cash
resources. The Group's minority partner has used the majority of
the proceeds to repay an outstanding US$8.0 million loan from the
Group and, as a result, the net cash outflow to the Group resulting
from the transaction was US$6.0 million.
The transaction serves to increase
the Group's effective ownership by just over 1,700 hectares, or 4%,
in its high-quality planted areas, and will be earnings enhancing.
Following the transaction, the Group continues to have a strong
balance sheet with low levels of outstanding debt, enabling it to
continue to review opportunities for further growth.
M.P. Evans Group PLC chairman, Peter
Hadsley-Chaplin, commented on the transaction: "This acquisition is
yet another step forward in the Group's strategy, securing 100%
ownership in almost all our estates to the benefit of all Group
shareholders. Robust yields and strong extraction rates from these
properties will continue to support the Group's priority to deliver
progressive returns. We are most grateful to Praba Madhavan for his
support to the Group as our local partner in Indonesia in recent
years and wish him well for the future."
Enquiries:
|
M.P. Evans Group PLC
|
Telephone: +44 (0) 1892
516333
|
Peter Hadsley-Chaplin,
chairman
Matthew Coulson, chief executive
Luke Shaw, chief financial officer
|
Cavendish Capital Markets (Nomad and
broker)
|
Telephone: +44 (0) 20 7220
0500
|
Matt Goode, George Lawson (Corporate
Finance)
Tim Redfern, Harriet Ward
(ECM)
|
Hudson Sandler (Financial
PR)
|
Telephone: +44 (0) 20 7796
4133
|
Charlie Jack, Charlotte Cobb, Francis
Kerrigan