Business
Acquisition of PT Pinago Utama Tbk
AEP Plantations PLC has acquired a 98.3% stake in PT Pinago Utama Tbk for approximately USD162 million, funded by existing cash resources. This acquisition of the Indonesian agribusiness, which has 15,400 hectares of oil palm and 3,500 hectares of rubber, is expected to be immediately accretive to earnings and increase AEP's crude palm oil production by approximately 23%. In 2025, Pinago reported revenue of USD135 million, profit before tax of USD24.5 million, and profit after tax of USD18 million. A mandatory tender offer for the remaining shares is anticipated to cost an additional USD3 million, and AEP will maintain its strong balance sheet and dividend policy. Disclaimer*
About this update from Aep Plantations Plc
[{"type":"text","content":"\n\nThe information communicated in this announcement is inside information for the purposes of Article 7 of Market Abuse Regulation 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018.\n5 May 2026\n \nAEP Plantations Plc\n(\"AEP\" or the \"Group\")\nAcquisition of PT Pinago Utama Tbk\n \nAEP, which owns, operates and develops plantations in Indonesia and Malaysia, is pleased to announce that, on 4 May 2026, its wholly owned subsidiary, AEP Nusantara Holdings Ltd (\"AEPNH\"), entered into sale and purchase agreements (\"SPAs\") with certain identified shareholders of PT Pinago Utama Tbk (\"Pinago\"), including its major shareholders, to acquire 767,664,900 ordinary shares in Pinago (the \"Shares\") at a price of Rp3,584 per Share for a total consideration of approximately USD162 million, representing an aggregate shareholding of approximately 98.3% (the \"Acquisition\"). The Acquisition was duly completed on the same date and is funded from the Group's existing cash resources.\n \nPinago is an Indonesian agribusiness listed on the Indonesia Stock Exchange, with operations located in South Sumatra. It has approximately 15,400 hectares of planted oil palm with average palm age of around 12 years and 3,500 hectares of planted rubber, supported by integrated processing facilities including a 120 tonne-per-hour crude palm oil mill, rubber processing plants, and ancillary infrastructure. The Group believes that Pinago represents a well-established brownfield asset with immediate production and earnings contribution.\n \nIn 2025, Pinago harvested approximately 161,000 tonnes of fresh fruit bunches, produced 105,000 tonnes of crude palm oil (\"CPO\") and its CPO extraction rate was 22.7%.\n \nFor the year ended 31 December 2025, Pinago reported revenue of approximately USD135 million, profit before tax of approximately USD24.5 million and profit after tax of approximately USD18 million.\n \n \nStrategic rationale\n \nThe Acquisition will deliver the following strategic benefits to the Group:\n· Immediate earnings accretion - the Acquisition is accretive to the Group's underlying earnings in the current financial year, supported by established production and cash flow.\n· Increased scale - the Acquisition expanded th...