New Britain Palm Oil to acquire CTP interests
February 24, 2010
by Eric Schroeder
MINNEAPOLIS — New Britain Palm Oil, the largest oil palm plantation owner and operator in Papua New Guinea (P.N.G.), has agreed to buy CTP Holdings’ interests in oil palm plantations in P.N.G. for $175 million plus adjustments for stocks and capital expenditure. CTP Holdings, which is a Cargill majority owned company, will continue to own and operate two oil palm plantations in Indonesia.
“The strategic decision to sell our P.N.G. assets is to allow CTP to focus its resources on sustainably growing our Indonesian oil palm plantations,” said Paul Conway, senior vice-president at Cargill. “We believe there is more value for our shareholders and customers in focusing on Indonesia. Our P.N.G. oil palm plantations are the only investment we have in P.N.G. Since no other Cargill business is actively investing in P.N.G. at this time, we did not have any internal synergies to increase the value of this investment.”
All of New Britain Palm Oil’s palm plantations are certified by the Roundtable on Sustainable Palm Oil (R.S.P.O.). The CTP properties that New Britain Palm has agreed to buy are in the process of earning R.S.P.O. certification.
The sale is scheduled to close by the end of April. CTP Holdings bought the P.N.G. properties in 2005 from the United Kingdom’s CDC Group P.L.C.