Sawit Sumbermas Sarana bought 100 percent of shares in Menteng Kencana Mas for $35 million, adding 20,800 hectares of landbank to its own assets. (Antara Photo/Wahdi Septiawan)
Sawit Sumbermas Acquires 20,800-Hectare Plantation in Central Kalimantan
BY :INVESTOR DAILY
NOVEMBER 06, 2015
Jakarta. Sawit Sumbermas Sarana, a unit of palm oil company Citra Borneo Indah, has acquired a rival in Central Kalimantan as part of the company’s expansion.
The company bought 100 percent of shares in Menteng Kencana Mas for $35 million, adding 20,800 hectares of landbank to its own assets, according to Harry M. Nadir, the Sawit Sumbermas Sarana finance director.
The company used a combination of its cash reserves and bank loans to finance the acquisition, Harry said in a statement on Thursday.
The deal follows Sawit Sumbermas Sarana’s acquisition of two other plantation companies, Tanjung Sawit Abadi and Sawit Multi Utama, in February. Those acquisitions brought the company’s total landbank at the time to 59,386 hectares and boosted its production by 12 percent in May to 398,830 tons of palm fruit bunches compared to the same month last year.