KUALA LUMPUR: Asiatic Development Bhd’s wholly-owned subsidiary Mediglove Sdn Bhd has proposed joint ventures to acquire and develop 45,000ha of oil palm plantation at Kabupaten Kapuas in Kalimantan Tengah, Indonesia.
In a statement yesterday, it said Mediglove would subscribe for six million shares in Asianindo Holdings Pte Ltd for US$9 million (RM29.25 million) cash while Kara Agri Pte Ltd would subscribe for 3.999 million shares at US$1 each.
Mediglove would also subscribe for 3,000 shares in Gaiaagri Services Ltd for US$3,000 while Gaiaagri Holdings Ltd would subscribe for 6,999 shares at US$1 each.
“Mediglove will initially subscribe for 60% equity interest in Asianindo, and progressively increase its equity interest to 77% in line with additional equity injection of US$37.75 million,” the company said.
It said Kara would have a 40% interest in Asianindo, and pare it down to 23% at a later stage.
Under the agreements, Asianindo would buy, develop and own the oil palm plantation and palm oil mills in Kabupaten Kapuas while Gaiaagri Services would be the sole and exclusive provider of the management services to Asianindo for the cultivation and development of oil palm plantation and setting up take palm oil mill for five years.
“By outsourcing the cultivation and development of oil palm plantation and establishment of palm oil mill of the proposed JV to Gaiaagri Services, Asiatic is able to accelerate its expansion and pursue its growth strategy in increasing its footprint in oil palm cultivation in Indonesia and other parts of the world,” it added.
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