Entering the end of 2021 PT Provident Agro Tbk (PALM) had made an important decision regarding the future of its palm oil business. PALM has sold all of its share ownership of its subsidiary namely PT. Mutiara Agam (MAG) which is located in West Sumatra at Rp. 354.49 billion. The buyer of 6,295 hectare palm oil land is PT. Global Indo Bersaudara (GIB), PT. Duta Agro Makmur and PT. Lambang Jaya Agro Perkasa.

This decision had been approved by independent shareholders on 21 November 2021. The purchase price of shares which have been fully accepted by Provident Agro (PALM) was Rp. 354.49 billion based on the company value (enterprise value) of Rp. 502.5 billion consisting of component of the purchase price of shares and MAG’s obligation for debt repayment.

Based on the investigation of IPO News that MUG’s oil palm plantation is precisely located at Nagari Tiku V Jurong, Tanjung Mutiara District, Agam Regency, West Sumatra. This plantation is equipped with a Palm Oil Mill (PKS) with a capacity of 60 tons of FFB per hour.

The decision to sell MAG made Provident Agro (PALM) no longer to own oil palm plantation as a source of revenue. After the sales process is complete, PALM will make changes to its business activities according to the Financial Services Authority Regulation No. 17/POJK.04/2020 on Material Transactions and Changes in Business Activities.

After not running the palm oil business anymore, Provident Agro (PALM) is preparing a series of processes to make changes to its business activities. Provident Agro (PALM) is also conducting a study on several business activities which have good prospects, one of which is becoming an investment company.

Related to the output fund of the sale of MAG, it will be used for several alternatives, namely, to invest after changes in business activities, to distribute dividends or to repurchase shares from shareholders.