Disposal

RNS Number : 8313Z

M. P. Evans Group PLC

17 March 2017

 

17 March 2017

M.P. EVANS GROUP PLC ('MP  EVANS' OR 'THE GROUP')

SALE OF ENTIRE 36.84% INTEREST IN PT AGRO MUKO AND PAYMENT OF SPECIAL 10 PENCE PER SHARE DIVIDEND

Further to its announcements on 6 and 8 December 2016, the MP Evans board (the 'Board') is pleased to announce that the sale of the Group's 36.84% share in PT Agro Muko to the Belgian Sipef group for the sum of US$100 million has been completed and cleared funds have been received.

In line with its announcement of 6 December 2016, the Board will pay a special dividend of 10 pence per share on 12 April 2017 to shareholders on the register on 31 March 2017.

The sale of PT Agro Muko accords with the Group's strategy of divesting its minority-held Indonesian estates, which are not managed by the Group, in favour of acquiring or developing its own, directly managed new projects. The Board is actively reviewing a prospective investment in a new, developed oil-palm project to replace at least the equivalent of the 7,200 hectares in PT Agro Muko (36.84% of 19,500 hectares). Separately, the Group is at an advanced stage in negotiations to acquire two projects in the immediate vicinity of the Group's existing East Kalimantan project. In addition to these prospective acquisitions, the Group is making good progress with the development of the remaining plantable areas on its existing new projects.

Commenting on the transaction, MP Evans Chairman, Peter Hadsley-Chaplin, said "The Group's sale of its shareholding in Agro Muko is an important milestone in realizing its strategy to have majority control of all its operations. This sale will enable the Group to sustain its impressive track record of growth through the acquisition of a mixture of newly planted plantations and plantation land for development. We feel confident of securing new projects and the Group has an excellent management team in place with a proven track record of developing and managing new plantation projects in Indonesia."

Enquiries:

M.P. Evans Group PLC

Telephone: [phone]

Peter Hadsley-Chaplin, Chairman

Tristan Price, Chief Executive

Peel Hunt (NOMAD and Broker)

Telephone: [phone]

Dan Webster

Adrian Trimmings

Hudson Sandler

Telephone: [phone]

Charlie Jack

Bertie Berger

 

END

 

 

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