Wilmar also announced last week that it intends to acquire at least 58.45% of Benso Oil Palm Plantation Ltd from the stake held by Unilever Ghana for US$12m. As the proposed offer will also trigger a GO, the consideration would rise to US$20m for 100% of BOPP. Unilever Ghana has given its irrevocable undertaking to accept the offer. BOPP is an upstream palm oil producer and is listed in the Ghanian Stock Exchange.
Earnings impact from BOPP is immaterial considering that the company only booked 1Q10net profits of approximately US$0.5m. Since the tax fraud allegations surfaced on Wilmar in mid May- charts indicate that the stock’s downtrend remains intact. Despite today’s brief bounce, downtrend resistance remain capped at $6.20.
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