REG - M. P. Evans Group - Acquisition

M P EvansAnnouncement

Mon 10:15

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RNS Number : 9258Q  M. P. Evans Group PLC  14 July 2025

 

M. P. EVANS GROUP PLC

("THE GROUP")

COMPLETION OF NEW LAND ACQUISITION

M.P. Evans Group PLC, a producer of sustainable Indonesian palm oil, is
pleased to announce that its wholly owned subsidiary, PT Evans Indonesia, has,
further to the announcement made on 16 April 2025, completed the acquisition
of two Indonesian plantation companies, PT Setara Kilau Mas Adicita ("SKMA")
and PT Sumber Bumi Serasi ("SBS").

As previously announced, SKMA and SBS both own oil-palm plantations in East
Kalimantan, with a total planted hectarage of 2,750 hectares under direct
ownership and a further 250 hectares managed on behalf of associated
smallholder co-operatives.

Those areas are relatively young, having all been planted since 2016, and so
the Group expects yields to increase in future years. SKMA and SBS will be
managed as part of the Bumi Mas estate, and all the crop from both acquired
properties will be sent for processing in the Bumi Mas mill.

The final gross consideration of US$35.1 million equates to US$12,600 per
Group-owned planted hectare. This has been settled using existing cash
resources and an initial payment of US$22.5 million was paid on completion,
which includes adjustments for working capital and net debt acquired.
Immediately following completion, the Group anticipates repaying loans in the
acquired companies of US$12.6 million. It is expected that the acquisition
will be immediately earnings enhancing. Following the transaction, the Group
maintains a strong, net cash, balance sheet, enabling it to continue reviewing
opportunities for further growth.

As a responsible producer, and consistent with its approach to other
acquisitions, the Group will work to include the acquired area as part of its
registration with the Roundtable on Sustainable Palm Oil ("RSPO") in line with
its commitment to continue increasing the proportion of its output that is
certifiably sustainable.

M.P. Evans chief executive, Matthew Coulson, commented: "We are delighted to
complete this transaction, in line with our strategic objectives. Adding the
planted areas at SKMA and SBS will bring the total Group-managed area at Bumi
Mas to almost 12,000 hectares, enabling the Group to make a significant
difference to the utilisation of the on-site mill. The Group now manages
approximately 70,000 planted hectares across its Indonesian projects."

 

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  Telephone: +44 (0) 20 7796 4133

Charlie Jack, Nick Moore, Francesca Rosser

 

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