KUALA LUMPUR (Sept 15): Genting Plantations Bhd, which is raising its plantation hectarage in Indonesia, has completed the acquisition of Cahaya Agro Abadi Pte Ltd (CAA) and Palm Capital Investment Pte Ltd (PCI) — for a combined US$48.04 million.

Recall that Genting Plantations had in June, announced it was acquiring the two loss-making firms, CAA and PCI, from Green Palm Capital Corp (GPCC), for a combined US$42.15 million.

Today, it said the purchase consideration now stood at US$48.04 million, after it conducted due diligence exercise to verify the value of the planted and unplanted areas of the two companies, all located in West Kalimantan.

The lands are located within close proximity to its other landbank in West Kalimantan, and present potential synergies and economies of scale, the group had reportedly said.

"The purchase consideration shall be satisfied via a cash outlay of US$26.17 million and assumption by Palmindo of outstanding liabilities, on completion date of US$21.87 million," it said.

According to its bourse filing, CAA has a "izin lokasi" totalling 8,095 hectares (ha) with planted areas of 3,384 ha (inti) and 869 ha (plasma), while PCI's "izin lokasi" stood at 13,900 ha, with zero planted area.

The acquisition will boost Genting Plantations' landbank by 26,248 ha. This compares with an earlier announcement of total land size of 21,995 ha.

Following the acquisition, the group should have 264,624 ha, versus 238,376 ha presently.

According to its earlier filing, Genting Plantations said the proposed acquisitions are in line with its long-term strategy to increase interest in the palm oil business, consistent with its confidence in the continued growth prospects of the industry.

It added that the move represents a positive step by the group towards realising its vision of establishing itself as a major player in the industry.

Genting Plantations shares closed up 14 sen or 1.29% at RM10.96 today, for a market value of RM8.41 billion.