GIC-Backed Indonesian Palm Oil Producer Is Said to Explore Sale

(Bloomberg) -- Owners of PT Triputra Agro Persada, including Singapore’s sovereign wealth fund GIC Pte, are exploring a possible sale of the Indonesian palm oil producer, people with knowledge of the matter said.

Shareholders including Northstar Group have asked banks to pitch for a role advising the firm on options that also include an initial public offering, said the people, who asked not to be identified as details are private. Any deal could value the firm, part of Indonesian tycoon Theodore Rachmat’s Triputra Group, at about $1 billion, the people said.

Announced mergers and acquisitions involving Indonesian companies have more than doubled this year to $21.7 billion, according to data compiled by Bloomberg. GIC and Northstar bought a $200 million minority stake in Triputra Agro Persada in 2012 and completed a follow-on investment in 2016.

Deliberations are at an early stage, and they may not result in a sale or IPO of the company, said the people.

A representative for Triputra Group said Triputra Agro Persada’s founders are not planning a stake sale at the moment and the group wasn’t aware of any plans by GIC and Northstar to exit the palm oil producer. Representatives for GIC and Northstar declined to comment.

Triputra Agro Persada and affiliates currently have 170,000 hectares of planted area, according to Triputra Group’s website.

Palm oil, the world’s most consumed edible oil, is found in everything from shampoo to sweets. Palm oil bulls are betting that prices will bounce back next year, offering some relief to growers after a slump of almost 20 percent for a second straight year.

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