M. P. EVANS GROUP PLC
SENNAH ESTATE LAWSUIT
Further to the announcement made on 18 May 2004, the board is pleased to report
that the appeal to the High Court in Medan, Indonesia has been successful and
the decision of the Medan District Court on 12 May 2004 has been reversed.
As referred to in note 25 of the 2003 annual report, on 9 September 2003, DR H
Rahmat Shah, the 20% shareholder of PT Sembada Sennah Maju which owns Sennah
Estate, filed a lawsuit against the 80% shareholder of that company, PT
Pangkatan Indonesia, which is itself 80% owned by M. P. Evans Group PLC. Sennah
Estate consists of 1,813 hectares and forms part of the Group's Indonesian
plantations of which 10,014 hectares are held through majority-held companies
and 25,276 hectares are owned by associated companies. The lawsuit demanded
that the sale and purchase agreement dated 19 March 2002, by which PT Pangkatan
Indonesia acquired its 80% holding in PT Sembada Sennah Maju, should be
cancelled.
On 12 May 2004, the Medan District Court found in favour of DR H Rahmat Shah
ordering that the shares be handed back to him and that he repay the purchase
consideration of some US$3.61 million to PT Pangkatan Indonesia within twelve
months. However, PT Pangkatan Indonesia immediately lodged an appeal to the
Medan High Court seeking to have the District Court's decision set aside. The
appeal was successful, allowing PT Pangkatan Indonesia to retain its shares in
PT Sembada Sennah Maju.
By order of the board
J F Elliott
Secretary
16 February 2005
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