Source - Alliance News

MP Evans Group PLC on Monday said the company progressed plans to acquire sole ownership of its palm producing estates.

The Tunbridge Wells, England-based producer of crude palm oil said it bought out the 5% minority holding in the majority of its subsidiary trading companies in Indonesia. The subsidiaries represent 70% of the planted hectarage of MP Evans.

A total of $14.0 million was spent to buy out the minority interests, equating to $9,000 per planted hectare.

As a result of the deal, MP Evans’s effective ownership increased by more than 1,700 hectares, or 4.0%, in its planted areas, which will be earnings enhancing.

One of the minority partners used the proceeds it received from MP Evans to repay an outstanding $8.0 million loan from the company, leading to a net cash outflow from MP Evans of $6.0 million as a result of the overall transaction.

Chair Peter Hadsley-Chaplin said: ‘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.’

Only one of MP Evans’s locations still has a minority interest, a 10% minority parter at the Bangka estate.

MP Evans shares were down 1.9% to 836.00 pence each in London on Monday morning.

Copyright 2024 Alliance News Ltd. All Rights Reserved.

Find out how to deal online from £1.50 in a SIPP, ISA or Dealing account. AJ Bell logo

Related Charts

M.P. Evans Group PLC (MPE)

-16.00p (-1.84%)
delayed 16:30PM