SSMS Plans to Acquire PT CBU

SSMS Plans to Acquire PT CBU

InfoSAWIT, JAKARTA –Palm oil plantation company, PT Sawit Sumbermas Sarana Tbk. (SSMS) is in negotiation to acquire PT Citra Borneo Utama (CBU) which contributes to increase the trade of the company.

Director of Finance, SSMS, Jap Hartono said, the company keeps negotiating with other related sides to acquisition plans to PT CBU. He thought, the negotiation involves investment banker and corporate lawyers. “To get the best solution to consolidate PT CBU to SSMS,” Hartono said in virtual public expose, Tuesday (30/11/2021).

He also mentioned, referring to financial reports of the company on 30 September 2021, SSMS acquired 13% shares of PT CBU within the total numbers Rp 600 billion on 29 December 2020.

SSMS also got 32% shares of PT CBU. The share acquisition of PT CBU was conducted through long term loan conversion that can be conversed by PT Citra Borneo Indah (CBI) with its shares to PT CBU.

From financial report of the company per 30 September 2021, the company got profits that could be distributed to the main company owner reaching Rp 1,03 billion. The net profits increased 287,93% year on year (yoy) from the previous which reached Rp 264,97 billion.

The increasing profits of SSMS happened for increasing price and palm oil trade. SSMS booked sale about Rp 3,68 billion or increased 34,69% yoy from Rp 2,74 billion per September 2020. The sale derived from affiliated companies, which were, CBU about Rp 3,26 billion or 88% of the total sale in SSMS per September 2021.

CBU produces some downstream from CPO, such as, stearin and olein. From the production, SSMS can produce CPO about 340.559 tons per September 2021, or increased 7% yoy from the previous year which reached 319.533 tons.

CPO selling price gets increasing to be Rp 9,3 million per ton which was Rp 7,78 million per ton. Hartono also mentioned, CBU’s mill utility is about 70 -80%. In 2022, it is hoped to increase to be 90 -100% to increase SSMS’ profits. (T2)