United Plantations Looks to Expand in Indonesia

United Plantations Berhad is looking to add to their business in Southeast Asia, where the Danish-owned company has roamed with great success for decades. The company has made an offer to purchase two plantations in Indonesia for an estimated price of 9 million DKK. United Plantations has already issued a conditioned purchasing agreement with the key shareholders of the two plantations, Surya Sawit Sejati and Mirza Pratama Putra. If the deal goes through it will be a historic step for the Danish-owned company, since it will be the first time that they enter into Indonesia. So far most of their plantations have been situated in Malaysia, where the company headquarters are also found.

The Surya Sawit Sejati plantation will cost 5.9 million USD (35.5 million DKK), while the Mirza Pratama Putra plantation has a price tag of 3.1 million USD (18.7 million DKK). In light of the news of these purchases, the United Plantations Berhad stock has gone up to its highest level since 1994 at rate of 7.85 – an increase this week of 0.6 pct. According to the Danish business newspaper Borsen, their stock has increased 61 pct. within the past year on the Copenhagen Stock Exchange.

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