First Resources (SGX:EB5) saw its stock price soar 3.33% during intraday trading on Monday, following news of a significant acquisition. The company has taken over the purchase of a majority stake in PT Austindo Nusantara Jaya Tbk, an Indonesian palm oil firm, in a deal valued at $329.8 million.
According to a filing on the Singapore Exchange last Friday, First Resources will acquire a 91.17% stake in PT Austindo Nusantara Jaya Tbk. This move comes after First Resources stepped in to replace its majority-owned unit, PT Ciliandra Perkasa, as the buyer under a novation agreement. The deal involves the purchase of over 3 billion shares in the Indonesian company.
Investors appear to be reacting positively to this strategic move, which could potentially strengthen First Resources' position in the palm oil industry. The company is also expected to conduct a mandatory tender offer for the remaining 8.83% stake in PT Austindo Nusantara Jaya Tbk, further consolidating its control over the acquired firm. This acquisition represents a significant expansion for First Resources and could be seen as a driver for future growth, explaining the strong market reaction and the subsequent rise in stock price.
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