KUALA LUMPUR (Yosefardi) – Absolute Synergy Limited (ASL), a wholly owned subsidiary of Golden Land Berhad had on 16 August 2011 entered into a Conditional Sale and Purchase Agreement (CSPA) for the proposed acquisition of 500 fully paid-up shares of Rp250,000 each in PT Sumber Bumi Serasi (SBS) for a maximum purchase consideration of USD2,947,800.
SBS has a Location Permit land of 4,913 hectares (The Tanjung Manis Land). After the completion of the cadastral process, SBS is currently in the process of applying for “Buku Panitia B” (land utilization committee approval).
The Management opined to increase its plantation land bank in order to achieve economies of scale after considering its existing plantation size.
Therefore, SBS has applied for another piece of land located in Kecamatan Sang kulirang, Kabupaten Kutai Timur (East Kutai), Kalimantan Timur from the Bupati of Kutai Timur with a total land area of approximately 6,517 hectares (the Sangkuri lang land) (Proposed Acquisition).
SBS has on 24 March 2014 enter into a Service Provision Agreement (the SPA) with Mr Ikhsanudin to engage Mr Ikhsanudin to assist in applying the Sangkurilang land, to obtain the required documents (Required Documents), to perform the required activities and subsequently obtain the certificate of Hak Guna Usaha (the HGU) with a maximum Service Fee (the Service Fee) of USD4.3 million.
PTSBS is a limited liability company established under Indonesian laws with an authorized share capital of Rp 500,000,000 divided into 2,000 shares of Rp 250,000 each, of which 500 shares in a total amount of Rp 125,000,000 have been issued at par and fully paid. The principal activity of SBS is cultivation of oil palm.
PTSBS has applied and was granted by the Bupato of Kutai Timuran Izin Lokasi with the total land area of approximately 6,517 hectares located at Sangkulirang District, East Kalimantan on 6 March 2014.
The maximum fee payable to Mr Ikhsanudin (the service provider) for the SPA is USD4.3 million (Maximum Fee) which was arrived at after taking into consideration of the location of the Land which is just next to Sangkulirang town.
The Proposed Acquisition is expected to be completed within twenty-four (24) months from the date of the SPA. Subject to a written consent from ASL, the time period as given in the SPA may be extended 1 time for a maximum of 12 months period.