Bumitama acquires biodiesel firm
Thursday, December 18 2014 - 12:55 AM WIB
SGX-listed Bumitama Agri Ltd announced on Wednesday that its subsidiary, PT. Bumitama Energi Lestari (BEL) together with PT. Karya Manunggal Sawitindo (KMS, had entered into a Sale and Purchase Agreement to acquire the entire equity interest in PT. Energi Baharu Lestari (EBL).
KMS is an associate of Bumitama Agri's controlling shareholders, Dr Lim Hariyanto Wijaya Sarwono and Mr Lim Gunawan Hariyanto (also a director of the company).
The acquisition consideration for 100 percent equity of EBL is Rp 10.4 billion, which was arrived at on a willing-buyer and willing-seller basis, taking into account, inter alia, an independent valuation undertaken on EBL's share capital on Sept. 30, 2014.
Upon completion of the acquisition, BEL and KMS will own 95 percent and 5 percent of the issued and paid-up share capital in EBL respectively. The participation of KMS is necessary to satisfy the local ownership laws No. 25 of 2007 in the Republic of Indonesia.
EBL was previously owned by unrelated third parties.
Following the acquisition, EBL will be an indirect subsidiary of the company.
EBL was incorporated in the Republic of Indonesia on Dec. 30, 2013 and engaged in biodiesel production. EBL is currently testing and commissioning a biodiesel refinery with a capacity of 20,000 tons per annum.
Total project cost for the biodiesel complex is estimated to be approximately US$9 million.
The acquisition is in line with the group's expansion into the downstream business. When the acquisition is completed, the group will immediately take possession of the existing biodiesel complex and operation.
Editing by Johannes Simbolon