Our refinery in Pasir Gudang in Johor, Malaysia now offers palm oil with low 3-MCPD (3-monochloropropane diol) and GE (glycidyl esters) limits. The new offering provides products and solutions which will enable our customers to comply with the current legislation in the EU. 3-MCPD is the most commonly […]Continue reading
Kuala Lumpur Kepong Bhd (KLK) entered into a shareholders agreement with three Indonesian partners with regards to their integrated oil palm refinery complex venture.
In a filing with Bursa Malaysia today, KLK said its wholly-owned unit KL-Kepong Plantation Holdings Sdn Bhd signed the agreement today with PT Perindustrian Sawit Synergi, PT Indonesia Plantation Synergy (IPS) and Al-Hakim Hanafiah (AHH).
Under the agreement, the KLK Plantation will subscribe for 165,000 shares in the joint-venture company for 165 billion rupiahs (RM45.03 million) in cash. IPS will take up 44,000 shares for 44 billion rupiahs (RM12.01 million) and AHH 11,000 shares for 11 billion rupiahs (RM3.00 million). This will give KLK Plantation, IPS and AHH stakes of 75%, 20% and 5% respectively in the joint venture.
"The subscription and all monies payable by KLK Plantation pursuant to the terms of the shareholder's agreement will be financed from KLK's internally-generated funds," the filing added.
The parties had proposed the deal in 2014, as part of KLK’s expansion strategy into the downstream palm oil business in East Kalimantan, Indonesia. KLK shares closed down two sen or 0.08% at RM25.48 today, bringing a market capitalisation of RM27.14 billion.
Original article from The Edge Markets, 26 March 2018