Harvested palm oil fruit at Rokan Hilir, Riau, Indonesia.
First Resources—controlled by Fangiono family, among the Indonesia’s wealthiest clans—agreed to buy a 91% stake in Austindo Nusantara Jaya for $329 million as the Singapore-listed company seeks to expand its plantation footprint amid rising demand for palm oil.
“This strategic move aligns with the group’s long-term strategy to be an integrated plantation player with processing capabilities that add value to its upstream produce, ensuring sustainable growth and profitability,” Ciliandra Fangiono, director and CEO of First Resources, said in a statement on Monday.
After completing the acquisition of the controlling stake in Austindo from businessmen brothers George and Sjakon Tahija, First Resources will also be required to buy the remaining shares held by minority shareholders at an additional cost of $31.9 million. The deal, which is subject to regulatory approvals, is expected to be completed next month.
Following the acquisition, First Resources aims to boost its palm oil output by 25% to 1.25 million tonnes per year. Last year, the company’s net profit jumped 56 % to $228.8 million as revenue increased 5.9% to $1.03 billion on the back of higher crude palm oil prices.
“Looking ahead, Indonesia’s expansion of its biodiesel mandate from B35 to B40 in 2025 is expected to tighten global palm oil supplies and support prices,” Fangiono said last month as the company announced its 2024 results.
Fangiono and his family has a net worth of $2.4 billion and was ranked 24th in Forbes Asia’s list of Indonesia’s 50 Richest that was published in December. He has been CEO of First Resources for more than a decade, which is majority owned by his family. Before joining the business, he worked as investment banker at Merrill Lynch in Singapore.
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