DSNG Tapped Into an Oil Palm Breeding Business by Investing in Verdant Group
JAKARTA, NOVEMBER 16, 2020 - PT Dharma Satya Nusantara Tbk (“the Company”, “DSNG”) through its subsidiary, PT Agro Pratama ("AP”) has made an strategic investment in Verdant Bioscience Pte Ltd (“Verdant”), a breeding venture structured out of Singapore with operations in Indonesia, to develop high yielding conventional seed and clonal seed/semi-clonal oil palm seed for the Indonesian seed market.
The Sale and Purchase of Shares Agreements of Verdant and its Indonesian subsidiary (“Verdant Group”) were signed on Thursday, November 12, 2020 along with the Joint Venture Agreement between shareholders and Verdant.
This investment of USD 5 million has resulted in DSNG, through AP, owning a minority stake of cumulatively 15% in the Verdant Group and becomes the Indonesian shareholder, along with other international shareholders such as Ackermans & Van Haaren NV (Belgium), SIPEF (Belgium) and Biosing Pte Ltd (Singapore).
Ackermans & van Haaren is a Belgian independent and diversified group listed on Euronext Brussels, aiming at creating shareholder value through long-term investments in a limited number of companies with growth potential on an international level.
SIPEF is a Belgian agribusiness group listed on Euronext Brussels and is devoted to certified sustainable production of tropical agricultural commodities, primarily palm oil. SIPEF also produces certified sustainable rubber, tea and bananas with operations in Indonesia, Papua New Guinea and Ivory Coast.
Biosing Pte Ltd is a private company established in Singapore and engages in research and experimental development on natural sciences and engineering support activities to agriculture and post-harvest crop activities.
The President Director of DSNG, Andrianto Oetomo, said that this investment was a strategic move for the Company to get involved in the development of high yielding oil palm seeds because Verdant Group owns the know-how and expertise in developing the oil palm tissue culture.
“This is a long-term strategic investment for DSNG. In the next few years, the replanting program of oil palms in Indonesia, both by plantation companies and community farmers, will be massive following the aging of oil palm plantations and consequently will create a huge demand for superior oil palm seeds,“ said Andrianto closing his statement.
ABOUT PT DHARMA SATYA NUSANTARA Tbk
PT Dharma Satya Nusantara Tbk (DSN Group) was established on 29 September 1980 and engaged in palm oil and wood products industry. Currently, DSNG has planted area of112,450 hectares and 10 palm oil mills that process Fresh Fruit Bunches (FFB) into CPO with the capacity of 570 tons per hour. In wood product segment, DSNG has two wood processing plant in Central Java that produce panel and engineered floorings.
Jl. Rawa Gelam V Kav. OR / 3B
Kawasan Industri Pulogadung (Pulogadung Industrial Estate)
Jakarta 13930, Indonesia