MP Evans Group PLC (AIM:MPE) has agreed to acquire two Indonesian plantation companies through its subsidiary, PT Evans Indonesia, adding to its footprint.
The businesses - PT Setara Kilau Mas Adicita and PT Sumber Bumi Serasi - own a total of 2,750 planted hectares located near the Group's Bumi Mas estate, plus a 250 hectares are managed for smallholder co-operatives.
In their last financial year, they yielded some 50,300 tonnes of crop. And, the plantations (planted since 2016) are expected to deliver higher yields over time.
London-listed MP Evans is paying US$34.20 million, funded using existing cash resources.
MP Evans noted it plans to process acquired crops through its existing Bumi Mas mill.
Peter Hadsley-Chaplin, MP Evans chair, told investors that the acquisitions will see the company “make a significant difference” to the profitable utilisation of the mill.
“This is another step forward in the group's growth strategy, after which it will manage almost 70,000 planted hectares across its Indonesian projects,” he said.
It is expected that the deal will complete in the third quarter of 2025.