First Resources to Acquire 91.17% Stake in Austindo Nusantara for $329.75 Million

JAKARTA, investortrust.id – First Resources Ltd, a prominent Indonesian palm oil plantation firm controlled by the Fangiono family, has signed an agreement on Tuesday, March 18, 2025, to acquire 91.17% of shares in PT Austindo Nusantara Jaya Tbk, an integrated agribusiness company. The transaction aims to significantly expand First Resources’ palm oil plantation area and strengthen its downstream operations amid growing global demand for sustainable palm oil products.

According to an official disclosure submitted to the Singapore Exchange (SGX), First Resources Ltd, through its subsidiary PT Ciliandra Perkasa, has agreed to acquire approximately 3.05 billion shares of Austindo Nusantara Jaya (ANJT) from current shareholders PT Austindo Kencana Jaya, PT Memimpin Dengan Nurani, and individual shareholder Sjakon George Tahija. The acquisition is valued at around $329.75 million, equivalent to Rp 5.4 trillion, translating to a price-to-book value ratio of approximately 0.86 times. In comparison, ANJT’s current market capitalization stands at approximately Rp 4.5 trillion.

“The sellers and buyer have entered into a conditional sale and purchase agreement on March 18, 2025. This transaction is subject to regulatory approval from Indonesia's Financial Services Authority (OJK),” Austindo Nusantara Jaya management said in an official statement released in Jakarta on Tuesday.

Austindo Nusantara Jaya has recently demonstrated strong financial performance, reporting a net profit attributable to the parent company of $9.64 million in 2024, significantly increasing from $5.15 million in the previous year. The growth was supported by operational efficiency, including reductions in employee expenses and general administrative costs, along with improved miscellaneous income.

Despite its profit increase, ANJT recorded a slight decline in revenue, dropping marginally to $236.81 million in 2024 from $237.56 million in 2023. Additionally, the company’s total assets decreased slightly to $573.20 million, down from $580.67 million the previous year, accompanied by a decline in total liabilities from $188.74 million to $181.31 million.

First Resources Ltd, listed on the Singapore Exchange, operates palm oil plantations covering 215,128 hectares, comprising 194,364 hectares in production and 20,764 hectares yet to enter production. In 2024, the company reported significant growth in net profit, rising to $245.8 million from $145.4 million in 2023, with revenues also increasing to $1.03 billion from $980.6 million.

This strategic acquisition underscores First Resources' commitment to expanding its palm oil business footprint and enhancing raw material availability to support its growing downstream operations.