Sunday 21 Jul 2024
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KUALA LUMPUR (March 26): Kuala Lumpur Kepong Bhd (KLK) has 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 rupiah (RM45.03 million) in cash. IPS will take up 44,000 shares for 44 billion rupiah (RM12.01 million) and AHH 11,000 shares for 11 billion rupiah (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 shareholders 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 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.

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