Golden-Agri Resources subsidiary to sell oilseeds unit

It’s a strategic move to dispose of its non-core oilseed assets.

Sinarmas Natural Resources (China) Investment Co., Ltd, an indirect wholly owned-subsidiary ofGolden Agri-Resources Ltd, plans to sell its entire equity interests in Sinarmas Natural Resources Foodstuff Technology (Tianjin) Co. to a subsidiary of Louis Dreyfus Company Asia.

The final consideration for the sale was not specified but according to a filing at the SGX, the company has a capital of $80.8m (US$60m).

The final consideration is to be determined on Sinarmas Natural Resources’ initial enterprise value on a debt-free and cash-free basis of $149.49 (US$111m), subject to subsequent adjustments.

The Tianjin entity was created to undertake oilseed crushing and vegetable oil refining. It has a total land area of 300,000 square meters.

The move is a strategic option for Golden Agri-Resources to dispose its non-core oilseed assets and operations in Tianjin.