Singapore listed company Samko Timber Limited, owned by Indonesian Sampoerna family, is in discussions to acquire a bio-technology company with technology in tissue culture and tree seedling production for S$5 million-S$10 million.
When the acquisition is completed, the technology is expected to facilitate Samko's move upstream into tree planting, said Samko in an official statement today.
"To date, no definitive agreements have yet to be entered into by the parties, and we wish to remind shareholders that there is no certainty or assurance as at the date of this announcement that the definitive agreements will be entered into or that the proposed acquisition will be proceeded with," said Samko management.
If completed, the acquisition is not expected to have any material impact on Samko's current year's financial performance. The company will make the necessary announcements to update shareholders on developments.
On 20 April 2011, the share price of the company increased approximately 28% from 12.5 cents at the commencement of the trading day to 16 cents on the close of trading.
The tsunami in Japan on 11 March 2011 has resulted in increased orders from Japan at higher prices and profitability. Sampoerna family through Forestry Limited is now controlling 42.6% stake in Samko Timber. Micahel Joseph Sampoerna, son of Indonesian tycoon Putera Sampoerna, is now in charged as Samko's Non-Executive Director.
Amir Sunarko, the founder of PT Sumalindo Lestari Jaya Tbk (SULI), is acting as Executive Director and Head of Kalimantan Operations. Eka Dharmajanto Kasih, Putera Sampoerna's executive, is also acting as Non-Executive Director.
Samko Timber is a leading timber processing company in Indonesia. With over 1 million m³ of processing capacity, it is among the top five tropical hardwood plywood producers globally, and one of the largest in Indonesia.
Samko currently controls 99.987% shareholding in PT Sumber Graha Sejahtera (SGS), which manages 51.95% ownership in Sumalindo Jaya Lestari.
Sumber Graha also controls five sub holding companies PT Makmur Alam Lestari (99.93%), PT Panca Usaha Palopo Ply Wood (98.46%), PT Putra Sumber Utama Timber (99.2%), PT Sejahtera Usaha Bersama (99.34%), and PT Sumber Graha Sejahtera Indonesia (99%).
Disclosure: No position at the stock mentioned above.
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