Thailand’s PTT to Fully Divest its Palm Oil Interests
As part of its strategy to divest non-core businesses, PTT, the leading Thai energy group, is divesting its total holdings in PT Mitra Aneka Rezeki (PT MAR) in Indonesia, selling its palm oil interest to PT Prasada Jaya Mulia (PJM) and Harvey Bay Overseas Ltd (HBO) for $35 million.
The entire deal including the share sale, assignment of loan, and advance subscription payment was completed on June 9, according to the company’s filing with the Stock Exchange of Thailand. PTT’s subsidiaries, Kalimantan Thailand Palm Pte Ltd and PTT Green Energy Services BV, will be responsible for taxes and fees associated with this transaction.
In a move to expand into environmentally friendly fuel and energy, PTT acquired holdings in PT MAR in February 2008 for $14.7 million. PT MAR controls palm plantations and refineries in Indonesia under the Pontiac project in West Kalimantan, and the Banyuasin project in South Sumatra.