Sime Darby purchases rubber tapper Indo Sukses for $4.46m

Conglomerate Sime Darby Bhd is acquiring an Indonesian company operating in the forestry industry, PT Indo Sukses Lestari Makmur, through the Malaysia-based firm’s wholly-owned subsidiary PT Minamas Gemilang.

The deal has been agreed at US$4.36 million after the purchase of Indo Sukses’s 3,800 ordinary shares for Rp 1 million each by Minamas from SLT Capital Pte Ltd (3,500 shares) and PT Entete Mining (300 shares), Bernama reported from Kuala Lumpur, Malaysia, on Wednesday night.

In a filing with Bursa Malaysia on Wednesday, Sime Darby said it expected to complete the proposed acquisition within two months from the date of execution of the agreement.

A Sime Darby spokesman said the purchase of the forestry company, which had the rights to 10,000 hectares of land earmarked for rubber cultivation, was essential.

"It is in line with our strategy to expand into rubber planting," he said as quoted by Bernama.