Operational Update & Appointment of Directors

RNS Number : 7847A

Equatorial Palm Oil plc

24 February 2014

 



24 February 2014

EQUATORIAL PALM OIL plc

("EPO" or the "Company")

Operational Update &

Appointment of Directors

Equatorial Palm Oil plc, (AIM: PAL), the AIM listed palm oil development and production company with operations in Liberia, West Africa provides the following update to the market:

Operational Update

·      2014 planting target of 5,000 hectares: 3,000 hectares at Palm Bay estate and 2,000 hectares at Butaw estate

·      Full activities have now resumed at both estates following receipt of loan funds and proceeds of the subscription shares from KL-Kepong International Ltd., a wholly owned subsidiary of Kuala Lumpur Kepong Berhad ("KLK")

·      KLK now the largest shareholder in EPO and the 50/50 joint venture partner with EPO in the operating company Liberian Palm Developments Limited ("LPD")

·      Initial land contractors selected and have been operating since December 2013

·      KLK's experienced personnel are supporting EPO management in the operational running of the Liberian oil palm development projects

·      Expansion of Liberian workforce continues to support reinvigorated development activity

Changes to Board of Directors

The Board is delighted to announce the appointments of Mr Lee Oi Hian and Mr Teh Sar Moh Nee as Non-Executive Directors with immediate effect. Mr Lee Oi Hian is the current Chief Executive Officer of KLK, listed on the Bursa Malaysia with a market capitalisation of approximately £4.5bn (as at 30 January 2014), having joined the Board of KLK on 1 February 1985. Mr Teh Sar Moh Nee is currently the Regional Director (Peninsular Malaysia) of the KLK Group and is responsible for all of KLK's plantations in Peninsular Malaysia. Short biographies of both new directors are set out below.

Further, the Company notes the retirement of Mr Anthony Samaha as a director of the Company with immediate effect. Mr Samaha was a founding director of EPO in 2005 and has provided invaluable assistance including as Chairman of the Audit Committee. The Company wishes him well in his future endeavours.

Michael Frayne and Geoffrey Brown remain as Executive Directors of Company.

Michael Frayne, Executive Chairman of EPO, commented:

"The EPO Board welcomes Mr Lee Oi Hian and Mr Teh Sar Moh Nee who have transformed KLK into one of the leading oil palm companies in the world. Their knowledge and experience will be invaluable as we develop our estates in Liberia. I would also like to acknowledge the contribution of Mr Anthony Samaha who is retiring as a director for his tireless efforts.

2014 will be a transformational year for the Company now that it has the support and funding from its largest shareholder KLK. The target planting of over 5,000 hectares this year supports the large scale planting programme that the Company put in place 2 years ago. The team in Liberia will greatly benefit from the experience of KLK as we look to ramp up planting rates in the coming years."

Mr Lee Oi Hian, aged 63

Mr Lee Oi Hian has been the Chief Executive Officer of KLK since 2001. He joined the Company in 1974 as an executive and was appointed to the Board of KLK in 1985. In 1988, he was appointed as Managing Director and became Chairman of KLK Group in 1993. He subsequently held the post of joint Chairman and Chief Executive Officer until 2008, when he relinquished his role as Chairman, remaining as Chief Executive Officer of the Group.

Mr Lee Oi Hian has served in various positions in the plantations industry, including the Malaysian Palm Oil Council, the Malaysian Palm Oil Board and the Malaysian Cocoa Board. He is also currently the Chairman of Batu Kawan Berhad, and a trustee of several charitable organisations.

Mr Lee Oi Hian is also an Honorary Fellow of the Malaysian Oil Scientists' and Technologies' Association (MOSTA) and Honorary Fellow of the Incorporated Society of Planters (FISP).

Current directorships	Past directorships within the last 5 years
Batu Kawan Berhad	Davos Life Science Sdn Bhd
Kuala Lumpur Kepong Berhad	Star Foundation
Applied Agricultural Resources Sdn Bhd	Esterol Sdn Bhd
Arusha Enterprise Sdn Bhd	Tan Sri Lee Loy Seng Foundation
Avery Holdings International Inc	Dr. W. Kolb Holding AG (Merged into Kolb Distribution AG on 12 December 2013)
Champion Brave Sdn Bhd
Congleton Holdings Sdn Bhd
Di-Yi Sdn Bhd
Davos Life Science Pte Ltd
Gerizim Holdings Pte Ltd
Grateful Blessings Inc
KLK Farms Pty Ltd
KLK Overseas Investments Ltd
Kolb Distribution AG
Kulumpang Development Corporation Sdn Bhd
Malay Rubber Plantations (Malaysia) Sdn Berhad
Mount Gerizim Farms Pty Ltd
Palm-Oleo Sdn Bhd
Perdana Leadership Foundation
Perfect Portfolio (S) Pte Ltd
Perfect Portfolio Sdn Bhd
Royal Perak Golf Club Berhad
Taiko Plantations Sendirian Berhad
Taiko-Straits Developments Sdn Bhd
Wan Hin Investment Sdn Bhd
Wan Hin Plantations Sdn Bhd
Yayasan KLK
Yayasan Tuanku Bainun

Mr Teh Sar Moh Nee, aged 58

Mr Teh Sar Moh Nee started his planting career in 1976 in Sime Darby Plantation Berhad before joining the KLK Group in 1984. He serves as Regional Director (Peninsular Malaysia) of the KLK Group and has also held the position of Chief Executive Officer at Ladang Perbadanan-Fima Berhad since May 2008.

Mr Teh Sar Moh Nee is a Council member and 2nd Deputy President of the Malaysian Agricultural Producers Association ("MAPA") and also sits on MAPA's Finance/Executive Committee and Negotiating Committee. Mr Teh Sar Moh Nee attended the Senior Management Programme at Harvard Business School and Senior Executive Programme at Stanford University Business School.

Current directorships	Past directorships within the last 5 years
Applied Agricultural Resources Sdn Bhd	The Kuala Pertang Syndicate Ltd (Dissolved on 2 December 2013)
Gunong Pertanian Sdn Bhd	The Shanghai Kelantan Rubber Estates (1925) Ltd (Dissolved on 1 February 2013)
Kulumpang Development Corporation Sdn Bhd	K.H. Syndicate Limited (Dissolved on 16 April 2012)
Ladang Perbadanan-Fima Berhad
Rubber Fibreboards Sdn Bhd
Uni-Agro Multi Plantations Sdn Bhd

There is no further information required to be disclosed pursuant to Schedule 2(g) of the AIM Rules.

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For further information, please visit www.epoil.co.uk or contact:

Equatorial Palm Oil plc Michael Frayne (Chairman)	[phone]
Strand Hanson Limited (Nominated Adviser) James Harris / Andrew Emmott / James Bellman	[phone]
Mirabaud Securities LLP (Broker) Peter Krens	[phone]

Notes to editors:

Equatorial Palm Oil plc is an AIM listed crude palm oil developer and producer with palm oil estates in Liberia, West Africa.  The Company was founded in 2005 and is focused on becoming a global, sustainable producer of high quality palm oil to regional and international markets.

With a significant land position in Liberia through its operating subsidiary Liberian Palm Developments Limited (LPD), the Company is geographically well positioned to serve the international and regional markets and is committed to making a positive impact on the communities in which it operates through investment in local schools, health clinics, housing and infrastructure. 

The Company's largest shareholder in EPO and 50:50 joint venture partner in LPD is Kuala Lumpur Kepong Berhad ("KLK").  KLK is one of the largest palm oil producers in the world and the Company will greatly benefit from their many years of expertise in oil palm development.

 

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