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REA Holdings PLC on Thursday said backer PT Dharma Satya Nusantara Tbk plans to invest a further $50 million in PT REA Kaltim plantations, and that it plans to sell subsidiary CDM for around $75 million. The stock was up 14% at 67.00 pence in London on Thursday afternoon. REA is a London-based company engaged in oil palm cultivation in Indonesia, as well as in producing crude palm and palm kernel oil. REA said the proposed further investment of approximately $50 million will increase DSN’s 15% stake in REA Kaltim to 35%. The subscription is expected to complete by mid-July next year. REA also said it may sell REA Kaltim’s subsidiary CDM to DSN, to which it has granted a priority right to the acquisition. It values CDM at $25 million and expects net proceeds of about $75 million, allowing it to reduce net debt to around $110 million and strengthen its balance sheet. REA expects the acquisition, if it proceeds, to complete by May 31. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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