20 November 2019

MEDAN —PT Mahkota Group Tbk (MGRO) through its subsidiary PT Berlian Inti Mekar has completed the acquisition process of a palm oil mill owned by PT Mahkota Andalan Sawit in Palembang with a value of IDR 120 billion.

Usli Sarsi, President Director of Mahkota Group, said the process of acquiring a palm oil mill with a capacity of 45 tons per hour officially occurred with the signing of a sale and purchase agreement on November 8, 2019.

“The acquisition value of this palm oil mill reached IDR 120 billion. Later, the contribution of consolidated net profit income to the Mahkota Group will increase by around 12.5%. This net profit income contribution will begin in November 2019,” Usli said, Monday (11/18).

With the contribution of net profit income from the newly acquired company this November, it will have a positive impact on the Mahkota Group's balance sheet in 2019.

The plan to acquire a palm oil mill in Palembang was announced by the Mahkota Group in September 2019. Only 2 months later the acquisition process was completed. PT Berlian Inti Mekar is a subsidiary of the Mahkota Group whose ownership is controlled by 99.99%.

This palm oil mill is located on the Prabumulih - Palembang crossroad KM. 54 Suka Menang, Gelumbang District, Muara Enim, South Sumatra.

In addition to adding palm oil mills, MGRO's palm oil refinery construction project is also nearing completion. This refinery plant will produce CPO derivative products such as Olein or cooking oil, Stearin, margarine raw materials or Oleochemicals. “The refinery plant will be operational soon. The administrative affairs of marketing the processed products are also being completed in parallel. Later, when the refinery is in production, the company's financial performance for the long term will be more positive,” said Usli. (Adv)