|The Board of Directors of Indofood Agri Resources Ltd. ("Indofood Agri") are pleased to announce that its subsidiary, PT Salim Ivomas Pratama ("SIMP") has today entered into a Subscription of Shares Agreement ("Agreement") with PT Mulia Abadi Lestari ("MAL") and PT Mitra Inti Sejati Plantation ("PT Mitra") whereby SIMP will subscribe for 66,500,000 new shares in PT Mitra at Rp1,000 per share, amounting to Rp66,500,000,000 (approximately S$11.1 million).|
The business activities of PT Mitra is engaged in plantation business and it currently owns oil palm plantations on 2 locations in West Kalimantan and 1 unit of Palm Oil Mill. PT Mitra owns total plantation land bank of 8,268 ha; of which approximately 2,700 ha are planted with oil palms. In addition, PT Mitra also owns approximately 8,000 ha of raw land.
The Completion of the transaction is conditional upon various conditions being fulfilled as stipulated in the Agreement. The said transaction is targeted to be completed by 30 June 2007. Upon completion, SIMP will hold 70% stake in PT Mitra while the remaining 30% stake will be held by MAL. PT Mitra's total issued shares at completion would be 95,000,000 shares.
The acquisition will be financed through internal funding and the said acquisition is not expected to have any material impact on the net tangible assets and earnings per share of Indofood Agri. None of the directors and substantial shareholders of Indofood Agri has any interest, direct or indirect, in the aforesaid transaction.
**CIMB-GK Securities Pte. Ltd. was the financial adviser to the Company for the acquisition of the entire issued share capital of Indofood Oil & Fats Pte. Ltd.)**