AEP Plantations has announced the acquisition of PT Pinago Utama Tbk (Pinago), an Indonesian-listed palm oil and rubber producer in South Sumatra. The acquisition is consistent with AEP Plantations’ stated strategy – and at a sensible price. The US$165m acquisition is funded from existing cash resources and should be immediately earnings enhancing. The price is equivalent to US$10,904 per hectare after taking into account the enterprise value and rubber hectarage. We believe the land value will ....
