KUALA LUMPUR (Nov 15): IOI Corp Bhd's wholly-owned subsidiary Oleander Capital Resources Pte Ltd is buying a 28% stake each in PT Sawit Nabati Agro (SNA) and PT Berkat Agro Sawitindo (BAS) from Singapore-listed Bumitama Agri Ltd for IDR701 million (approximately US$49,070 / RM203,798). 

Bursa Malaysia-listed IOI Corp owns a 32.03% stake in Bumitama as at March 11, 2019, according to Bumitama's latest annual report.

Bumitama executive chairman and CEO Lim Gunawan Hariyanto said yesterday in a statement to the Singapore bourse that upon completion of the proposed sale of SNA and BAS to Oleander, both SNA and BAS will cease to be associated companies of Bumitama.

"The aggregate consideration for the sale of the sale shares is IDR701 million (approximately US$49,070), which is payable in full by Oleander to the company in cash on completion of the sale. The consideration was mutually determined between the company and Oleander on an arm’s length basis, taking into account the indicative value of 28% interest in both SNA and BAS based on the valuation conducted by the independent valuer, KJPP Rengganis, Hamid & Rekan," Lim said.

"As at 30 June 2019, the book value and net tangible asset value of the sale shares is IDR701 million (approximately USD$49,070). The open market value of the sale shares is not available as the shares of SNA and BAS are not publicly traded. KJPP Rengganis, Hamid & Rekan was appointed by the company to conduct an independent valuation on SNA and BAS. Based on their valuation report dated 19 August 2019, and based on the discounted cash flow method and adjusted book value method, the value of 28% interest in SNA as at 31 December 2018 is a negative value, whereas the value of 28% interest in BAS as at 31 December 2018 is IDR218 million (approximately US$15,260)," Lim said.

At Bursa today, IOI Corp's share price rose one sen or 0.23% at 2:38pm to RM4.41 for a market value of RM27.65 billion. IOI Corp saw 1.02 million shares traded.