KUALA LUMPUR: Kuala Lumpur Kepong Bhd (KLK) has completed its acquisition of a 56.2% stake in IJM Plantations Bhd (IJMP), thus making it a subsidiary of the KLK group.

       In a statement yesterday, KLK chief executive officer and executive director Tan Sri Lee Oi Hian (pic) said the acquisition will further strengthen the group’s plantation business through better synergies across its value chain.

       “The acquisition is in line with the group’s long-term strategy of expanding our plantation business.

       “As we are familiar with the areas in which IJMP’s estates are located, we look forward to better integration of the combined group’s oil palm value chain.

       KLK plantation

       “We are continuously looking at ways to improve our operating efficiencies with the aim of reducing our production costs.”

       With IJMP as a subsidiary, KLK said its total oil palm planted area has now increased by 28.7% from 527,350 acres as at Sept 30, 2020, to 678,768 acres currently.

       “IJMP has oil palm estates in Sabah, Malaysia and Kalimantan, Indonesia and as of March 31, IJMP’s total planted area stood at 151,418 acres.”

       KLK said the move to acquire the 56.2% stake in IJMP for a total cash consideration of RM1.53bil was first announced in June 2021.

       “Upon the completion of the share sale and purchase agreement, the group is obliged to extend an unconditional mandatory general offer to acquire all the remaining IJMP shares not already held by the group for a cash offer of RM3.10 per offer share.

       “The takeover notice in relation here was served to the board of IJMP on Aug 30, 2021.”

       IJM Plantations

       IJMP is principally involved in the cultivation of oil palms, investment holding, trading of crude palm oil and provision of management services to its subsidiaries.

       IJMP’s subsidiaries are engaged in the cultivation of oil palms, processing of fresh fruit bunches into crude palm oil and palm kernel, processing of palm kernel into crude palm kernel oil and expeller, trading of palm produce, provision of management services, property holding and investment holding.