Sime Darby to take over the Indonesia

SIME Darby Bhd will significantly expand its involvement in rubber plantations to capitalize on global demand for commodities following the steps to take over a company of Indonesia is in the process of obtaining the right to develop 10,000 hectares of rubber plantations in the republic.

In an announcement to Bursa Malaysia yesterday, the company's largest listed oil palm plantation world, said indirect wholly-owned subsidiary in Indonesia, PT Minamas Glory to submit a proposal to buy 95 percent stake in PT Indo Makmur Sustainable Success at U.S. $ 4,356 million (RM13.52 million ).

He said that under a conditional share purchase agreement, the PT Minamas will purchase 1,000,000 ordinary shares of 3.800 rupiah each in PT Indo Success of the SLT Capital Pte Ltd (3.500 shares) and PT Entete Mining (300 shares). PT Indo established Success on 23 April 2008 is a company engaged in forestry activities, including the development of rubber plantations and cultivation. The company is currently in the process of applying for licenses to business activities of rubber (IUPHHK License) from the Ministry of Forestry of Indonesia (MOF). With the license, it allows the company obtain concession rights to develop 10,000 hectares of rubber plantations in the rubber industry, located in East Belitung, South Maluku, Indonesia. "IUPHHK Licence is only a matter of the review undertaken WA Product Development Director of Forestry of Indonesia," said Sime Darby. States said, the proposed acquisition is expected to be completed within two months from the date of execution of the agreement, which began on 21 January. Meanwhile, Sime Darby spokesman, when contacted in Kuala Lumpur yesterday, said the acquisition of the Indonesian company would allow conglomerates to increase its total area of rubber plantations to more than 18,000 hectares.