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Update Statement on IOI Pelita
18/12/2017Corporate Communications

IOI Corporation Berhad (IOI) would like to thank its stakeholders for the valuable insights and opinions expressed over the last few days with regard to the potential divestment of its 70% equity interest in IOI Pelita Plantation Sdn Bhd (IOI Pelita). IOI has listened closely to stakeholder opinions on this issue.

As stated last week, no commercial decisions have been taken pending further dialogue and engagement with RSPO, interested NGOs, customers and other stakeholders. In this respect, no announcement about the divestment, which would have been required under the Malaysian Stock Exchange Rules for a confirmed divestment agreement, has been issued by IOI.

Following further consideration, it is clear to IOI that the divestment cannot and will not proceed, and this has been communicated to the potential buyer and other relevant stakeholders.

IOI sincerely regrets the fact that it did not seek stakeholder opinions on this matter sooner in the potential divestment process. The company will continue to work hard towards resolution of the IOI Pelita case as per its agreements with NGOs and obligations under the RSPO. IOI will also be discussing this matter with the local communities involved.

IOI looks forward to further constructive dialogue with its partners on this and all matters relating to the implementation of its Group Sustainability Palm Oil Policy.

Dato’ Lee Yeow Chor
Chief Executive Officer
IOI Corporation Berhad