<article>Indonesian rubber producer Indo Komoditi Korpora has announced plans to acquire Chinese firm Zonergy’s local CPO unit, Sinar Cahaya Cemerlang (SCC), for a maximum price of $33 million.</article>

Indonesian rubber producer Indo Komoditi Korpora has announced plans to acquire Chinese firm Zonergy’s local CPO unit, Sinar Cahaya Cemerlang (SCC), for a maximum price of $33 million.
Headquartered in Beijing, Zonergy is affiliated with <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=zte" target="_blank">ZTE Group</a>, one of the largest Chinese telecommunications companies. It engages in the development of solar and biomass energy and the cultivation of palm oil. In Indonesia, the company grows palm oil on over 30,000 hectares.
Indo Komoditi management said that it intends to purchase between 60 per cent to 100 per cent of SCC’s paid up capital. The firm will receive a total of $15 million in loans from major shareholders Alam Tulus Abadi (ATA) and Sinoasia to fund the acquisition.
“Sinoasia will give out maximum $10 million, while ATA will provide $5 million,” said company officials in a statement.
The acquisition will be completed after a due diligence has been conducted.
SCC’s purchase will be Indo Komoditi’s first venture into the CPO business. The company said that it believes the palm oil industry holds a stable prospect for the future, as the CPO is currently the most used oil in the world. CPO is one of Indonesia’s main drivers in exports.
Indo Komoditi will ask for shareholders approval for the transaction on March 2, 2017.
Indo Komoditi was started in 1982 under the name of Indo Aya Leasing, as a company that engages in a wide range of activities from leasing, trading, agency, representatives, contractor, services, transportation, printing, agriculture, and real estate to industry.
The company went public in 1989 but was delisted by the authorities in 2013. It was then re-listed on the Indonesian Stock Exchange (IDX) in September last year.
In the first nine months last year, Indo Komoditi reported a total sales of Rp 291.3 billion, a slight slump from the same period the year before of Rp 294 billion. However profit jumped to Rp 3 billion from Rp 1.3 billion in the third quarter of 2015.
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Indonesia: Indo Komoditi to acquire Zonergy’s local unit for $33m

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Indonesia: Indo Komoditi to acquire Zonergy’s local unit for $33m

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