Jaya Holdings to takeover Indonesia plantation firm Izzisen Global

Jaya Holdings Limited, the listed cash company on the Singapore Exchange (SGX), said it plans to acquire the entire equity interest in Indonesia’s Izzisen Global Pte Ltd from Hery Hermawan Herijanto and his family.

Located on Sulawesi Island in Indonesia, Izzisen Global has run 24 Indonesian plantation companies, which hold concessions to parcels of agricultural permits and two timber management firms, giving the services related to timber and plantation concessions development. Currently, it has occupied a permit area of approximately 263,000 hectares. It collectively holds the concessions to 24 parcels of agricultural permits in Indonesia to be cultivated into crude palm oil plantations.

According to its filing the SGX, it will own the assets through a 100-per-cent equity interest in Izzisen Global, following an undertaken restructuring.

“The proposed acquisition will provide an opportunity for Jaya to venture into a new business area that has potential for growth. It will enhance the long-term interests for the company and shareholders,” Jaya’s board said in its filing.

Jaya Holdings that was formerly a vessel charterer has been a cash company since June last year, when it sold its core assets to Mermaid Marine Australia for S$625 million. The company recently said that it was planning to move from the Mainboard of SGX to the Catalist Board.

If the deal happens, it will result in a reverse takeover of Izzisen Global.

The value of Izzisen’s assets will be subject to independent valuations and they will not be less than S$315 million. However, this acquisition will be considered by basing on an enterprise value of its assets between S$150.5 million and S$173.8 million.

The consideration will be satisfied by the issue and allotment of Jaya’s new ordinary shares at S$0.026 apiece or some other price to be mutually agreed between the parties.

Jaya will undertake a consolidation of its issued shares such that each consolidated consideration share will be priced at least S$0.20 per share.

Jaya will procure a written undertaking from the controlling shareholders of the company, namely Cathay Asset Management Co and Linden Capital LP, who own approximately 20.63 per cent and 19.05 per cent respectively of its outstanding issued and paid-up share capital, to vote in favour of the Proposed Acquisition and not to dispose of their shareholdings in the company until the conclusion of the extraordinary general meeting in respect of the proposed acquisition.

The filing cited that the parties would enter into a definitive sale and purchase agreement within 60 days from the date of signing of the term sheet.

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.