REG - AEP Plantations PLC - Acquisition of PT Pinago Utama Tbk

AEP PlantationsAnnouncement

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RNS Number : 9072C  AEP Plantations PLC  05 May 2026

The information communicated in this announcement is inside information for
the purposes of Article 7 of Market Abuse Regulation 596/2014 as it forms part
of UK domestic law by virtue of the European Union (Withdrawal) Act 2018.

5 May 2026

 

AEP Plantations Plc

("AEP" or the "Group")

Acquisition of PT Pinago Utama Tbk

 

AEP, which owns, operates and develops plantations in Indonesia and Malaysia,
is pleased to announce that, on 4 May 2026, its wholly owned subsidiary, AEP
Nusantara Holdings Ltd ("AEPNH"), entered into sale and purchase agreements
("SPAs") with certain identified shareholders of PT Pinago Utama Tbk
("Pinago"), including its major shareholders, to acquire 767,664,900 ordinary
shares in Pinago (the "Shares") at a price of Rp3,584 per Share for a total
consideration of approximately USD162 million, representing an aggregate
shareholding of approximately 98.3% (the "Acquisition"). The Acquisition was
duly completed on the same date and is funded from the Group's existing cash
resources.

 

Pinago is an Indonesian agribusiness listed on the Indonesia Stock Exchange,
with operations located in South Sumatra. It has approximately 15,400 hectares
of planted oil palm with average palm age of around 12 years and 3,500
hectares of planted rubber, supported by integrated processing facilities
including a 120 tonne-per-hour crude palm oil mill, rubber processing plants,
and ancillary infrastructure. The Group believes that Pinago represents a
well-established brownfield asset with immediate production and earnings
contribution.

 

In 2025, Pinago harvested approximately 161,000 tonnes of fresh fruit bunches,
produced 105,000 tonnes of crude palm oil ("CPO") and its CPO extraction rate
was 22.7%.

 

For the year ended 31 December 2025, Pinago reported revenue of approximately
USD135 million, profit before tax of approximately USD24.5 million and profit
after tax of approximately USD18 million.

 

 

Strategic rationale

 

The Acquisition will deliver the following strategic benefits to the Group:

·    Immediate earnings accretion - the Acquisition is accretive to the
Group's underlying earnings in the current financial year, supported by
established production and cash flow.

·    Increased scale - the Acquisition expanded the Group's planted oil
palm area and increased our crude palm oil production by approximately 23% and
25%, immediately enhancing the Group's production, revenue and earnings.

·    High-quality brownfield asset - Pinago's estates have an average palm
age of around 11 years, with integrated processing facilities, providing the
Group a balanced production profile and modest operational contribution.

·    Operational capability - the Acquisition adds an experienced
workforce, including skilled planting and engineering teams, while enabling
further performance improvements across the expanded asset base.

 

Completion and Tender Offer

 

Satisfactory due diligence on Pinago has been completed and the Acquisition
was completed on 4 May 2026. AEPNH will now be required under Indonesian
regulations to undertake a mandatory tender offer ("MTO") for the remainder of
Pinago's issued share capital not already held by AEPNH. The MTO offer price
is expected to be the same as the price per Share of the Acquisition. Assuming
full acceptance of the MTO, the maximum consideration payable by AEPNH (and
therefore the Group) will be approximately USD3 million.

 

Following the Acquisition, the Group will continue to maintain a strong
balance sheet and its dividend policy payout.

 

AEP Executive Director of Corporate Affairs, Marcus Chan, commented:

 

"The acquisition of Pinago represents an attractive opportunity to deploy part
of the Group's cash surplus into a sizeable, producing plantation asset with
established infrastructure and strong earnings contribution. It meaningfully
increases our scale and strengthens the Group's ability to deliver sustainable
returns from a larger base of producing assets."

 

 

 

 Enquiries:

 

 AEP Plantations Plc                                                +44 (0) 20 7216 4621
 Marcus Chan Jau Chwen, Executive Director (Corporate Affairs)
 Kevin Wong Tack Wee, Group Chief Executive Officer

 Montfort

 Ann-marie Wilkinson, Shireen Farhana                               aep@montfort.london

 Cavendish Capital Markets Limited - Financial Adviser and Broker   +44 (0) 20 7220 0500
 Matt Goode, George Lawson, Trisyia Jamaludin (Corporate Finance)
 Harriet Ward (Corporate Broking)

 

 

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