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Source: www.asiaecon.org |


Singapore plantation company, Golden Agri Resources, said on Wednesday it aims to raise S$311 million ($215 million) offering 17 rights shares for every 100 existing shares to support its long term growth plan. The company is the second biggest palm oil plantation in the world. The Group's revenue in 2008 was US$ 3 billion, with total assets of US$6.8 billion.

The Golden Agri may be in focus after the family that owns Malaysian gaming firm Genting Bhd sold about 9 percent of shares in its Singapore unit. The company, which own plantations assets in Indonesia, also said that is also issuing 3-year warrants. If all of the warrants are exercised the company could raise another S$381 million, it said.  The group’s principal activities are cultivating oil palm, processing and distributing crude palm oil and refining crude palm oil into cooking oil, margarine and shortening for further distribution.  several other activities include treasury services, software engineering, trading of fertilizers, ownership and cultivation of tea and rubber plantation and investment holding.  The shareholders that subscribe to the deal will get warrants that could increase the issuance’s value to $480 million.  This week the Group announced that it intends to use the proceeds for three purposes mainly. The first part (which is less then 25%) will be used to funding land acquisition, planting trees with organic growth and mills and refineries constructions.  In Indonesia, The Golden Agri-Resource has three refineries, 400,000 hectares of planed land 33 palm oil processing mills. In the Chinese cities Ningbo and Zhuhai , the company has oilseed storage and crushing facilities and deep -sea port.  The company’s share price has gained steadily over the course of the year and is up 48% year-to-date. First-quarter earnings, released in mid-May, disappointed both analysts and shareholders, leading to a dip in the share price, although shares have recovered since then.  The company gross profits were down 76% year-on-year, when adjusting for non-cash gains, operating earnings were up 32% quarter-on-quarter.  The company’s biggest shareholders—Massingham International, which has an 18.8% stake, and Flambo International with a 27.8% stake—have both stated that they will take up their entitlements. According to Bloomberg, the investor with the next largest stake is Van Eck Associates Corporation, which holds 0.7%.

Source: www.asiaecon.org |

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