AEP Anglo-eastern Plantations Plc

RNS Number:9837I
Anglo-Eastern Plantations PLC
03 December 2007


Monday 3 December 2007

           ANGLO-EASTERN ACQUIRES 33,000 HA OF LAND FOR $8.3 MILLION

Anglo-Eastern Plantations Plc, which owns approximately 50,000 hectares (ha) of
plantations, principally oil palm in Indonesia, has signed two contracts for the
acquisition of rights over a total of 33,000 ha of land on the islands of Borneo
and Bangka, both in Indonesia. The total consideration is $8.3 million in cash,
from the group's existing facilities. These acquisitions will enable significant
expansion of the group over the next five to eight years

Borneo - Kalimantan

The first block of land rights, amounting to 26,000 ha, is owned by a local
company, P.T. Sawit Graha Manunggal (SGM), 95% of which is to be acquired for a
consideration of $6.8 million. The balance of 5% will be retained by the vendor,
an Indonesian national, who will fund his share of the development alongside
Anglo-Eastern.

The location is Central Kalimantan, 6 hours' drive north of the southern coastal
city of Banjarmasin and just outside the district capital, Tamiang Layang.
Accessibility by both road and river is good.

Terrain and rainfall are suitable for oil palm and rubber. Vegetation is
predominately scrub, the original forest having been removed some years ago. The
area is vacant except for isolated villages and is zoned for commercial
agricultural development. Central Kalimantan is already an important plantation
area.

Development of this block will begin in early 2008. A portion will be allocated
to community projects and to village claims. Production is likely to commence in
2012 and the area should be fully planted by 2015.

Bangka

The second block of land rights, amounting to 7,000ha, is owned by another local
company, P.T. Bangka Malindo Lestari (BML), 95% of which is being acquired for a
consideration of $1.4 million. The balance of 5% will be retained by the vendor,
an Indonesian national, who will fund his share of the development alongside
Anglo-Eastern.

Location is on the island of Bangka (off the south east coast of Sumatra), one
and half hours' drive south of the provincial capital of Bangka Pinang. Road and
marine access is very satisfactory. Bangka is becoming an important plantation
development area.

Terrain and rainfall are suitable for oil palm and rubber. Vegetation is scrub
and previously logged secondary forest. Again, the area is vacant save for
occasional small villages and is zoned for commercial agricultural development.
Some land will be allocated for projects to support existing local communities.

Development will also begin in early 2008, with a view to completion by 2012 and
to first production in 2012.

General

Application has been made for conversion of the two local companies into
accredited "foreign investment" companies.

Conversion of land rights into confirmed land titles for both blocks will take
between one and two years and requires development to commence in the interim.

Development costs of these two projects over the next five years are estimated
at $60 million. As reported with the 2007 half year results, the group has drawn
down a loan of $34.5 million which, together with self generated funds, will be
used to develop these and current projects.

Neither of these acquisitions will affect group profits in 2007 or 2008.
Earnings should begin to be significant in 2013.


Mr T H Chan, Chairman and Chief Executive, commented:

"These two acquisitions will enable the significant expansion of the group in
the next five years and beyond. Their effect is to increase our total land area
to 83,000ha, of which ultimately the total planted will be approximately
73,000ha, compared to 38,000ha today.


Enquiries:

Anglo-Eastern Plantations plc                                    020-7236 2838
Rollo Barnes (Financial Director)

Bankside Consultants Limited
Charles Ponsonby                                                 020-7367 8851




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