Qiangtai Environmental Protection (01395) announced that on March 15, 2024, PT Rimba Palma Sejahtera Lestari (RPSL), a non-wholly-owned subsidiary of the company, intended to sell the target business to PT Indorama Eco Viridian at a total cost of IDR 60 billion (equivalent to approximately HK$30 million). The transaction was carried out in accordance with the terms and conditions of the framework agreement.
The target business refers to the wood pellet production business currently operated and managed by RPSL. The seller must establish the target company and transfer (including) its assets, land, licenses and/or inventory (restructuring) relating to the target business to the target company. After the restructuring is completed, the buyer must subscribe for new shares to be issued by the target company in accordance with the terms of the final agreement, so that the buyer holds 80% of the target company's expanded issued share capital after the sale is completed.