IndoAgri makes bid for London Sumatra Indonesia

Indofood subsidiary IndoAgri is buying a majority interest in oil palm company London Sumatra Indonesia. The company is has set it sights on purchasing 64.4 to 100 percent of London Sumatra’s shares, valued roughly at $623 million to about $1 billion.

If approved, the transaction would make IndoAgri the third-largest oil-palm producer in Indonesia, behind Golden AgriResources and AstraAgro Lestari Tok, with a total of 110,235 hectares of mature oil palm.

The acquisition is part of the company’s plan to expands its integrated plantation model, strengthen its core plantation business, increase landbank, increase productivity and self-sufficiency in, and maintain quality oil palm seed production.