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Golden Agri-Resources Evaluates Investment Opportunities in Liberia

Posted: Aug 16, 2010 2 minute read GAR 0 Likes
  • Golden Agri-Resources is looking at investment opportunities in Liberia
  • Utilising its expertise to pioneer large scale cultivation of sustainable oil palm plantations and related downstream activities.

Singapore, 16 August 2010 – Further to Golden Agri-Resources’ (“GAR” or the “Company”) intention to continually explore investment opportunities worldwide to expand its businesses, both upstream and downstream, GAR is looking at investment opportunities in Liberia and the prospect of utilising its expertise to pioneer large scale cultivation of sustainable oil palm plantations and related downstream activities.

The Company is in the process of actively evaluating this investment opportunity through a potential investment in the Verdant Fund LLP (“Verdant”), a private equity fund. Apart from GAR, Verdant is expected to receive funding from other investors. Presently, Verdant is the sole shareholder of Golden Veroleum (Liberia) Inc (“Veroleum”).

Veroleum is a company incorporated in Liberia, West Africa, and is in the process of being granted a concession by the Government of Liberia (the “GoL”) to develop approximately 220,000 hectares of land on which to cultivate oil palm over a period of 20 years. The initial development will commence with 15,000 hectares.

Veroleum notes that the GoL is pursuing active policy to develop the country and is recognised as one of the fastest improving countries in Africa to do business in. Sustainable oil palm development is a central element of the GoL’s poverty reduction strategy.

Veroleum intends not only to efficiently develop the concession area in order to maximise returns to all subscribers to Verdant but also to do so sustainably and in accordance with the principles and criteria set out by the Roundtable on Sustainable Palm Oil (“RSPO”), and to the benefit of the local community.

GAR’s Chairman and CEO, Mr Franky Widjaja, highlighted: “We believe the current market environment validates our business model and competitive strengths. As part of our value creation efforts, we regularly evaluate all investment opportunities. While we expect our focus to remain in Indonesia, we are open to any geographic expansion opportunities. Through our strategic discussion with Verdant, we hope to build shareholders value by utilising our expertise in large scale cultivation of sustainable oil palm plantations and contribute positively to GoL’s poverty reduction strategy.”

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About Golden Agri-Resources Ltd (“GAR”)

GAR is the world’s second largest palm oil plantation with a total planted area of 433,200 hectares (including smallholders) as at 30 June 2010, located in Indonesia. It has integrated operations focused on the production of palm-based edible oil and fat products.

Founded in 1996, GAR is listed on the Singapore Exchange since 1999 with a market capitalisation of US$4.59 billion as at 30 June 2010. Flambo International Ltd, an investment company, is GAR’s largest shareholder, with a 49% stake. GAR has several subsidiaries, including PT SMART Tbk (“SMART”) which is listed on the Indonesia Stock Exchange in 1992.

GAR is focused on sustainable palm oil production. Its primary activities include cultivating and harvesting of oil palm trees; processing of fresh fruit bunch into crude palm oil (“CPO”) and palm kernel; and refining CPO into value-added products such as cooking oil, margarine and shortening. Through its subsidiaries, GAR operates palm oil processing mills, refineries and kernel crushing plants. It also has an integrated operation in China including a deep-sea port, soybean crushing plants, and production of refined edible oil products.


For further information, please contact:

Pelham Bell Pottinger Asia Claire Yong / Ang Shih-Huei
Tel : (65) 6333 3449
Email : [email protected] / [email protected]

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