MPE has announced the purchase of minority shares in its 14,500ha of Sumatra-based plantations from ANJ. This is a win-win for MPE: it increases ownership of the plantations from 80% to 95% (retaining a 5% local shareholder), bringing ownership into line with its other plantations; effectively acquires a further 2,200ha of planted and well managed land for a very attractive price, and; achieves earning accretion and better deploys the strong balance sheet. In FY2020E our earnings increase 4%
04 Sep 2019
M.P. Evans - Purchase of minorities accretive to sum of parts
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M.P. Evans - Purchase of minorities accretive to sum of parts
M.P. Evans Group PLC (MPE:LON) | 858 103 1.4% | Mkt Cap: 455.3m
- Published:
04 Sep 2019 -
Author:
Michael Clifton | Cavendish Research -
Pages:
4
MPE has announced the purchase of minority shares in its 14,500ha of Sumatra-based plantations from ANJ. This is a win-win for MPE: it increases ownership of the plantations from 80% to 95% (retaining a 5% local shareholder), bringing ownership into line with its other plantations; effectively acquires a further 2,200ha of planted and well managed land for a very attractive price, and; achieves earning accretion and better deploys the strong balance sheet. In FY2020E our earnings increase 4%