Wilmar

Wilmar: Indonesia's Ministry of Trade highlighted that Wilmar will invest US$900m to "build 6 factories of CPO end products such as soap and margarine, beginning in 1Q this yr. Grp was unavailable for comments on the deal, however analysts highlighted that "essentially move is in line with Co’s long-term processing strategy" to grow into plantations and into processing facilities…..

Seperately, Co. gave an update on its proposed acquisition of Benso Oil Palm Plantation in Africa, noting the proposed acquisition was approved by the Securities and Exchange
Commission of Ghana on 31Jan11, and the offer period for the offer has commenced, and closes on 22nd Mar11….

We however like to highlight that investors have not viewed Wilmar’s recent diversification into property as a favoruable sign, on back of a possible conglomerate discount which could be applied to stock, and stock’s movement could probably be sideways, on further concerns that Co’s 4Q results could see some weakness, after peer Archer Daniel Midlands reported slower operating profits in China in their oil seeds business and China Agri issued profit warnings.