Business council hails palm oil acquisitions

THE Business Council PNG (BCPNG) has congratulated New Britain Palm Oil Ltd (NBPOL) on its acquisition of the Markham Farming Company Ltd last week.
NBPOL has 100 per cent equity interest in Markham Farming Company Limited (MFCL) for a total cash consideration estimated at US$52.6 million (K173.6mil) from Markham Agro Pte Ltd (MAPL).
This is pursuant to a share sale and purchase agreement (SPA) entered into between NBPOL and MAPL on Aug 23.
In addition to this, NBPOL has also assumed outstanding net debt of MFCL and MAPL totalling about US$11 million (K35.7mil).
BCPNG Broadening Industry Base Working Group chairman Hulala Tokome said this purchase once again demonstrated how the country was not only an investment destination for mining and petroleum ventures but in agriculture as well.
His working group is working closely with the Government to foster foreign direct investment in this sector, where much of PNG’s population can readily participate.
BCPNG executive director Douveri Heano noted how there has been a surge in agricultural investments for the past two years.
These are indicative of value chains opting to increase local content, improved export market access, development partner support in rehabilitating plantations
and a strong desire from Government to facilitate agricultural investments.