Jun 24, 2010

Eterindo to spend Rp1.5 trio for CPO

PT Eterindo Wahana Utama Tbk (ETWA) plans to acquire 99% stakes in two palm oil plantation companies PT Maiska Bhumi Semesta and PT Malindo Persada Katulistiwa respectively due prospective CPO business. 
Eterindo is ready to allocate Rp116 billion to support the acquisition of both companies. Eterindo will use proceed from assets disposal amounting to Rp674.06 billion in PT Eternal Buana Chemical Indonesia and PT Petrowidada.
According to Eterindo Director Yudianto Koesman, the company has proceed the acquisition since last year. He said Maiska Semesta and Malindo Katulistiwa own 40 hectares of land bank and 1,211 hectares are planted area.
"In the next 5 years, the plantation is estimated to produce 23 million tons-28 million tons of palm oil per hectare," he said.
In a bid to underpin CPO business, Eterindo plans to provide Rp1.5 trillion, mainly used to develop infrastructures, land clearing, and plant. "We have options to issue new shares."

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