JAKARTA: M.P. Evans Group, a producer of sustainable Indonesian palm oil, announced Wednesday that its subsidiary, PT Evans Indonesia, has agreed to acquire two Indonesian plantation companies in a $34.2 million deal.
The company signed a conditional share purchase agreement to acquire the entire issued share capital of PT Setara Kilau Mas Adicita (SKMA) and PT Sumber Bumi Serasi (SBS), both of which own oil palm plantations in East Kalimantan. Their combined planted hectarage totals 2,750 hectares, with an additional 250 hectares managed on behalf of smallholder cooperatives.
The acquisition aligns with M.P. Evans’ strategy to expand its planted hectarage near existing operations. The plantations are located close to the company’s Bumi Mas estate and mill, where all harvested crops from the newly acquired properties will be processed.
“This acquisition strengthens our position in Indonesia and enhances the utilization of the Bumi Mas mill,” said M.P. Evans chairman Peter Hadsley-Chaplin. “Following this, our managed area at Bumi Mas will reach almost 12,000 hectares, contributing to our long-term growth strategy.”
The deal is expected to be earnings-enhancing for shareholders and will be funded from existing cash resources. The purchase price equates to $12,500 per planted hectare. Completion is anticipated in the third quarter of 2025, pending regulatory approvals.
M.P. Evans is acquiring SKMA and SBS from PT Golden Land Gemilang, a subsidiary of Malaysia’s Golden Land Berhad, along with individual minority shareholders. The company also reaffirmed its commitment to sustainability, stating that the acquired land will be registered with the Roundtable on Sustainable Palm Oil (RSPO).
The acquisition adds to M.P. Evans’ nearly 70,000 hectares of managed plantations across Indonesia.