(Alliance News) – REA Holdings PLC said on Thursday that financier PT Dharma Satya Nusantara Tbk plans to invest a further USD50 million in PT REA Kaltim plantations, and that it plans to sell subsidiary CDM for around USD75 million.
The shares rose 14% to 67.00 pence in London on Thursday afternoon.
REA is a London-based company engaged in oil palm cultivation in Indonesia and the production of crude palm and palm kernel oil.
REA said the proposed further investment of approximately USD50 million will increase DSN’s stake in REA Kaltim from 15% to 35%. Registration is expected to be completed by mid-July next year.
REA also said it may sell REA Kaltim’s subsidiary CDM to DSN, to whom it has granted a priority right for the acquisition. REA values CDM at USD25 million and expects net proceeds of approximately USD75 million, allowing it to reduce net debt to approximately USD110 million and strengthen the balance sheet.
REA expects that the acquisition, if it goes ahead, will be completed by May 31.
By Emma Curzon, reporter at Alliance News
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Tags: REA Holdings shares rise USD50 million investment November
