REG - M. P. Evans Group - Acquisition

M P EvansAnnouncement

03/06/2024 07:00

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RNS Number : 7187Q  M. P. Evans Group PLC  03 June 2024

M. P. EVANS GROUP PLC

("THE GROUP")

PURCHASE OF MINORITY INTERESTS

M.P. Evans Group PLC, a producer of sustainable Indonesian palm oil, is
pleased to announce that it has completed the purchase of the 5% minority
holding in the majority (70% by Group-owned planted hectarage) of its
Indonesian subsidiary trading companies.

The acquisition has been made by the Group's wholly owned subsidiary, P.T.
Evans Indonesia, and encompasses the 5% shareholdings in the Group's estates
at Kota Bangun, the Pangkatan group, Bumi Mas, Musi Rawas and Simpang Kiri
held by Praba Madhavan P.A. Madhavan. Following the transaction, the only
remaining location in which there is a minority interest is the Group's estate
at Bangka where the Group has a 10% minority partner.

The total cost of the purchase was US$14.0 million, based on an agreed price
of US$9,000 per planted hectare, adjusted for other assets and liabilities in
the relevant subsidiary companies and was funded from the Group's existing
cash resources. The Group's minority partner has used the majority of the
proceeds to repay an outstanding US$8.0 million loan from the Group and, as a
result, the net cash outflow to the Group resulting from the transaction was
US$6.0 million.

The transaction serves to increase the Group's effective ownership by just
over 1,700 hectares, or 4%, in its high-quality planted areas, and will be
earnings enhancing. Following the transaction, the Group continues to have a
strong balance sheet with low levels of outstanding debt, enabling it to
continue to review opportunities for further growth.

M.P. Evans Group PLC chairman, Peter Hadsley-Chaplin, commented on the
transaction: "This acquisition is yet another step forward in the Group's
strategy, securing 100% ownership in almost all our estates to the benefit of
all Group shareholders. Robust yields and strong extraction rates from these
properties will continue to support the Group's priority to deliver
progressive returns. We are most grateful to Praba Madhavan for his support to
the Group as our local partner in Indonesia in recent years and wish him well
for the future."

Enquiries:

 M.P. Evans Group PLC  Telephone: +44 (0) 1892 516333

Peter Hadsley-Chaplin, chairman
Matthew Coulson, chief executive

Luke Shaw, chief financial officer

 

 Cavendish Capital Markets (Nomad and broker)  Telephone: +44 (0) 20 7220 0500

Matt Goode, George Lawson (Corporate Finance)

Tim Redfern, Harriet Ward (ECM)

 

 Hudson Sandler (Financial PR)  Telephone: +44 (0) 20 7796 4133

Charlie Jack, Charlotte Cobb, Francis Kerrigan

 

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