First Resources Limited Announces Strategic Transactions for H2 2025

Key Highlights from the Latest Corporate Announcement

First Resources Limited (“FRL”), a major player in the palm oil sector, has released details of several significant transactions undertaken during the second half of 2025. These transactions, disclosed in accordance with Rule 706A of the Singapore Exchange Securities Trading Limited (SGX-ST) Listing Manual, are summarized below.

1. Acquisition of PT Masuba Citra Mandiri (“PT MCM”)

• Acquirers: PT Pancasurya Binasejahtera (PT PSBS) and PT Pancasurya Agrindo (PT PSA), both indirect subsidiaries of FRL.
• Ownership Acquired: 99.90% by PT PSBS and 0.10% by PT PSA, resulting in PT MCM becoming an indirect subsidiary of FRL.
• Nature of Business: PT MCM is engaged in oil palm plantation in Indonesia.
• Purchase Consideration: IDR 213.22 billion (approx. US\$13.0 million), fully paid in cash using internal resources.
• Net Asset Value Acquired: IDR 304.08 billion (approx. US\$18.6 million), as determined through purchase price allocation in accordance with SFRS(I) 3 Business Combinations.
• Implication for Investors: The acquisition increases FRL’s plantation assets and potentially enhances future earnings and asset value, especially since the net asset value acquired exceeds the purchase price. This could be seen as an accretive acquisition and may positively influence investor sentiment.

2. Update on PT Austindo Nusantara Jaya, Tbk (“PT ANJ”) Shareholdings

• Shareholding Position as of 3 October 2025: FRL held 95.92% directly; its direct subsidiary PT Ciliandra Perkasa (PT CLP) held 2.47%.
• Transaction: Between 3 October and 31 December 2025, PT CLP disposed of 882,000 shares in PT ANJ on the open market, generating total cash proceeds of IDR 3.09 billion (approx. US\$187,000).
• Resulting Shareholding: PT CLP’s stake reduced from 2.47% to 2.44%, while FRL’s direct holding in PT ANJ remains unchanged at 95.92%.
• Investor Takeaway: The disposal by PT CLP is relatively small and does not materially affect FRL’s consolidated control of PT ANJ. However, any changes in large shareholdings of subsidiaries can attract market attention.

3. Capital Reduction in Lynhurst Investment Pte. Ltd. (“Lynhurst”)

• Transaction: FRL reduced its investment in Lynhurst by cancelling 12,500,000 ordinary shares, raising S\$12.5 million (approx. US\$10.1 million) in proceeds.
• Ownership: Post-capital reduction, Lynhurst remains a wholly-owned subsidiary of FRL.
• Meaning for Shareholders: The capital extraction from Lynhurst increases cash resources at the parent level, which may be redeployed for strategic initiatives or returned to shareholders in the future.

Overall Financial Impact

According to the company, these transactions did not have any material impact on the consolidated net tangible assets or earnings per share of the Group for the year ended 31 December 2025.

Matters of Potential Interest to Shareholders

• PT MCM Acquisition: The strategic acquisition at below net asset value could enhance long-term value and may be viewed positively by investors.
• Stability in Key Subsidiaries: Despite the reduction in PT CLP’s holding in PT ANJ, FRL maintains effective control of this important subsidiary.
• Efficient Capital Management: The capital reduction at Lynhurst demonstrates active management of group resources.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors are encouraged to conduct their own research or consult with a qualified financial advisor before making investment decisions.

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