Kerman & Co advises its long-standing AIM-listed client, Equatorial Palm Oil PLC, on its US$35.5 million joint venture agreement

14 April 2014

Kerman & Co advised Equatorial Palm Oil PLC, the AIM-listed palm oil development and production company with operations in Liberia, on its joint venture with KLK Agro Plantations Pte Limited, a wholly owned subsidiary of Kuala Lumpur Kepong Berhad (“KLK”). The joint venture relates to the operations and funding of Equatorial Palm Oil PLC’s 50 per cent. owned company, Liberian Palm Developments Limited (“Palm Developments”).

Under the terms of the joint venture agreement, Palm Developments will receive up to US$35,500,000 by way of cash and funding commitments. As part of the initial funding, each of Equatorial Palm Oil PLC and KLK have individually agreed to subscribe for US$7,5000,000 of new equity in Palm Developments (the “Initial Funding”). In addition to the Initial Funding, KLK has agreed to provide any further funding required by Palm Developments up to a maximum amount of US$20,500,000 which may, at the discretion of KLK, be provided by way of debt or preferential equity finance.

As part of the joint venture arrangements, Palm Developments has also entered into an agreement with Taiko Plantations Sdn. Bhd. (“Taiko”), a wholly owned subsidiary of KLK, under the terms of which Taiko has been appointed to manage and conduct Palm Development’s operations in Liberia.

Asad Qayyum, Associate, of the Corporate & Capital Markets Team advised Equatorial Palm Oil PLC on this transaction.