News

October 03, 2006

MP Evans Should Benefit From Shrewd Switch To Indonesian Palm Oil Plantations

By Sally White

What a transformation in AIM listed plantation group MP Evans’ outlook on life – the 130-year old is sounding spry indeed with phrases such as “robust”, “buoyant” and “great confidence” scattered all over its 2006 interim statement. Palm oil is its secret. At a time when more and more countries are looking to set mandatory biofuels targets in their strategies of changing the energy mix – last month the EU became the latest – having interests in 35,000 producing hectares of palms has made AIM-quoted MP Evans very popular indeed.

MP Evans has been raising money from sales of its valuable Malaysian palm oil plantations, preparing for a long-term investment spree which the market estimates could be for as much as £145million. The plan is to further its future in lower-cost Indonesian palm oil, purchasing control of a further 50,000 hectares at least. While Malaysia restricts ownership to 30 per cent, even though freeholding is allowed, Indonesia permits leaseholders to own 100 per cent of estates.

 While Australian...