Mewah International Inc. Acquires 100% Stake in PT Paluta Inti Sawit, Expanding Palm Oil Operations

Key Highlights of the Acquisition

• Acquisition Target: 100% equity interest in PT Paluta Inti Sawit (PTPIS), an Indonesian company engaged in the palm oil sector.
• Acquisition Consideration: Total price set at IDR 123.0 billion (approx. US\$7.4 million) before adjusting for liabilities.
• Net Purchase Price: After deducting liabilities assumed, the net price is IDR 68.7 billion (approx. US\$4.1 million).
• Funding Method: Acquisition will be financed fully through internal accruals, not external borrowing or equity fundraising.
• Net Asset Value: The net asset value of the acquired shares is approximately IDR 128.5 billion (US\$7.7 million).
• Ownership Impact: PTPIS will become an indirect wholly owned subsidiary of Mewah International Inc.
• Accounting Treatment: Purchase price allocation to goodwill, intangible assets, and other assets and liabilities is ongoing and will be finalized within 12 months of the acquisition date.

Strategic and Financial Implications

• Location and Potential: The acquisition was agreed upon after considering the strategic location and growth potential of PTPIS’s assets, as well as the commercial attractiveness of the palm oil business and prevailing market conditions.
• No Material Impact: The transaction is not expected to have a material impact on the consolidated net tangible assets or earnings per share of Mewah International Inc. for the current financial year.
• Shareholder Interests: No directors or substantial shareholders have any direct or indirect interests in the transaction, underscoring a straightforward and transparent acquisition process.

What Investors and Shareholders Should Know

• This acquisition signals Mewah International Inc.’s ongoing commitment to expanding its footprint in the palm oil industry, particularly in Indonesia, a key growth market for agribusiness.
• Although the transaction is not expected to impact the company’s financials materially in the current year, the addition of new assets and operational facilities could provide long-term growth opportunities and improved market positioning.
• The final accounting treatment, including goodwill and intangibles, will be confirmed within a year, which may have implications for future earnings and balance sheet presentation.

Potential Share Price Impact

While the company states that the transaction will not have a material impact on the current year’s financials, investors should monitor developments over the next 12 months as purchase price allocation is finalized and integration progresses. The acquisition enhances Mewah’s strategic positioning and could create value over the medium to long term, especially if the acquired assets perform above expectations or if market conditions improve.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to conduct their own research or consult with their financial advisor before making investment decisions. The information above is based on company announcements and is subject to change without notice.

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