Business
Land Acquisition
Land Acquisition.
About this update from Aep Plantations Plc
[{"type":"text","content":"\n RNS Number : 3417X Anglo-Eastern Plantations PLC 24 June 2008 \n \n\nTuesday 24 June 2008\n\n\nANGLO-EASTERN ACQUIRES A FURTHER 30,000 HECTARES OF LAND FOR $7.7 MILLION\n\nAnglo-Eastern Plantations Plc (AEP.L), which owns approximately 102,000 hectares (ha) of plantation land, of which some 83,000 ha are developable and 39,000ha are currently planted, principally with oil palm in Indonesia, has acquired the rights over 30,000 ha of land in the province of South Sumatra in Indonesia. The total consideration is $7.7 million in cash, from the group's existing facilities. \n\nThis acquisition follows acquisitions of 33,000ha in Kalimantan and Bangka island in December 2007 and of 15,000ha in Bengkulu province in January 2008. The group now has a substantial land bank, enabling significant expansion over the next five to eight years.\n\nThe South Sumatra land rights are owned by two local companies. The first is P.T. Empat Lawang Agro Perkasa, 95% of which is to be acquired for a consideration of $3.6 million, and the second is PT Karya Kencana Sentosa Tiga, where 95% is to be acquired for a consideration of $4.1 million The balance of 5% in each company will be retained by the vendor, who will fund his share of the development alongside Anglo-Eastern.\n\nThe land is conveniently placed to form a natural management unit with the existing operations in the neighbouring province of Bengkulu. The location is 125 kms east of Bengkulu town. \n\nTerrain is undulating while soils and rainfall are both suitable for both oil palm and rubber. Vegetation is predominately scrub and light secondary forest. The area is vacant, except for some villages, and is zoned for commercial agricultural development. At present, it is not possible to estimate accurately the proportion of the area which will be allocated to local community projects, but a substantial portion of the area will be available for planting by the group.\n\nLimited planting will begin in 2009, using...