Indonesian firm bids in $1.3b oil palm deal

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An Indonesian firm is leading bids to purchase a palm oil plantation in Riau province on Sumatra island just across from Singapore in a deal worth up to $1.3 billion.

The deal will be among the largest mergers and acquisitions  for the sector in Asia in recent years and is expected to be finalised in November, a source with insider knowledge of the deal told Reuters.

The purchase, named Project Thor, would cover plantations, mills and other assets and is being spearheaded by Alexander Thaslim, president director of unlisted investment vehicle PT Borneo Pacific.

Thaslim has been negotiating since 2011 to acquire the 83,879 hectares of land spread across 36 plantations.

The project has raised $300 in equity and plans to fund the rest through loans, two sources told Reuters.

A sizable 95 per cent of the Riau plantations are owned by Malaysia’s TH Plantations, who signed a conditional share agreement with PT Borneo in April.

Of the plot, 73,650 hectares are already planted.

A presentation by Credit Suisse, the financial adviser for the deal, confirmed that the purchase is expected to be $1.3 billion.

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Reading Time: 1 minute

An Indonesian firm is leading bids to purchase a palm oil plantation in Riau province on Sumatra island just across from Singapore in a deal worth up to $1.3 billion.

Reading Time: 1 minute

An Indonesian firm is leading bids to purchase a palm oil plantation in Riau province on Sumatra island just across from Singapore in a deal worth up to $1.3 billion.

The deal will be among the largest mergers and acquisitions  for the sector in Asia in recent years and is expected to be finalised in November, a source with insider knowledge of the deal told Reuters.

The purchase, named Project Thor, would cover plantations, mills and other assets and is being spearheaded by Alexander Thaslim, president director of unlisted investment vehicle PT Borneo Pacific.

Thaslim has been negotiating since 2011 to acquire the 83,879 hectares of land spread across 36 plantations.

The project has raised $300 in equity and plans to fund the rest through loans, two sources told Reuters.

A sizable 95 per cent of the Riau plantations are owned by Malaysia’s TH Plantations, who signed a conditional share agreement with PT Borneo in April.

Of the plot, 73,650 hectares are already planted.

A presentation by Credit Suisse, the financial adviser for the deal, confirmed that the purchase is expected to be $1.3 billion.

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