INDONESIA: Wilmar, Noble form palm oil joint venture
This is the second joint venture for Wilmar in the last six months
Singapore agribusiness giant Wilmar International has formed a joint venture with peer Noble Group to produce palm oil and its by-products in Indonesia.
The companies said Wilmar's subsidiary Newbloom will hold a 53.74% equity stake in the venture while Noble unit Noble Plantations will own the rest. Financial details were not disclosed.
Through the joint venture, the firms will develop and operate palm projects to produce and sell crude palm oil and its by-products in the Papua region of Indonesia.
This is the second joint venture for Wilmar in the last six months. In October, the company formed a business with agribusiness giant Archer Daniels Midland to sell and market vegetable fats and oils in Europe.
The deal comes as Wilmar books a drop in full-year profit, hurt by lower palm oil prices. In the 12-month period earnings slid 21.6% to US$1.26bn.
Total sales were up by 1.7% to $45.46 for the year as higher sales volume in palm & laurics, consumer products and sugar was "substantially" offset by lower average selling price, reflecting the general trend of palm oil and sugar prices.
Wilmar and Noble form palm focused strategic joint venture
Noble Group Limited (“Noble”) and Wilmar International Limited (“Wilmar”) wish to announce the sale by Noble Resources Pte Ltd, a wholly owned subsidiary of Noble, of a 53.74% equity interest in Noble Plantations Pte Ltd (“JVCo”) to Newbloom Pte Ltd, a wholly owned subsidiary of Wilmar. The sale and purchase is subject to various regulatory approvals. On completion, JVCo will be 53.74% owned by Wilmar and 46.27% owned by Noble.
Noble and Wilmar have agreed, through JVCo, to form a Papua focused, strategic joint venture in order to develop and operate palm projects to produce and sell crude palm oil and its by-products.
JVCo presently owns a majority interest in PT Henrison Inti Persada, which in turn owns 22,953 Ha of land for palm production in Papua, Indonesia.
Original source: Wilmar International
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