Bumitama

Bumitama: proposes to buy 95% stake in PT Tanah Tani Lestari (TTL) for Rp 0.95b (US$100k) from 3rd parties. TTL is in the plantation business, and has a principle license for total area of 1415 ha in Central Kalimantan designated for plasma area. TLL has also applied for another potential landbank of up to 16000 ha in the same province. Currently, TTL has equity of Rp 250m. Post transaction, TTL will increase its equity to Rp 1b. Bumitama notes the acq is inline with the Group’s expansion plan to increase the hectarage of its land bank. Adds, TTL’s land is near to its existing land bank and the close proximity will allow the Group to achieve operational efficiency. The acq is not expected to have material impact on FY12 financials.