Anglo-eastern Plantations Share Discussion Threads

[ntv] 30/11/2023 16:58

skanjete2
Your PBT figures are irrelevant as they for 2022. It was an exceptional year for CPO
Be lucky if they make $5m this year due to CPO price
Still it will help tidy up the balance sheet
Doubt very much there is $200m on the balance sheet either
The Group had net cash of $226.1m at 30 September 2023

[skanjete2] 30/11/2023 10:41

This way, all the available cash at the Indonesian subsidiaries is freed.

I think there's still some 200US$ available.
So this can be upstreamed as well as future cash flows.

Next step would be to sell the Malaysian plantation.

[skanjete2] 30/11/2023 10:35

This is GREAT news!
The price is even lower than expected.

For m60US$, they buy :
- 93,84 mUS$ of (undervalued) gross assets
- 14,24 mUS$ of PBT last year

This will be a major uplift in earnings per share in future years.

[ilad60] 30/11/2023 10:22

Consolidation of AEP's Holdings in Its Indonesian Subsidiaries



AEP is pleased to announce the completion of the acquisitions of the minority interests in the following Indonesian subsidiaries, from PT Marison Nauli Ventura ("MNV") for a total cash consideration of US$60 million.



· 20% of the issued share capital of PT Tasik Raja ("Tasik"),

· 20% of the issued share capital of PT Hijau Pryan Perdana ("HPP"),

· 20% of the issued share capital of PT Bina Pitri Jaya ("BPJ"),

· 10% of the issued share capital of PT Alno Agro Utama ("Alno") and

· 25% of the issued share capital of PT Musam Utjing ("MU").



Following these transactions, the Company now wholly-owns Tasik, HPP, BPJ, Alno and MU.



The purchase of the minority interests in these five subsidiaries is in line with the Group's stated strategy of consolidating AEP's holdings in its Indonesian subsidiaries with the Group's cash resources, as reported in our 2022 Annual Report.



The acquisitions of the minority interests in Tasik, HPP, BPJ, Alno and MU is expected to enhance future earnings per share as it no longer has to apportion retained profits to MNV going forward.

[gaiusgracchus] 29/11/2023 06:37

Thank you!

[34adsaddsa] 28/11/2023 18:35

2022 annual report: "The weighted average age of the trees in the Group is approximately 14 years. In Indonesia, the trees averaged about 13 years old while in Malaysia the trees are older at 25 years."

Page 6 of the annual report has a pie chart of the palms by maturity: 11% immature, 33% young, 32% prime, 24% old.

hxxps://www.angloeastern.co.uk/~/media/Files/A/Anglo-Eastern/reports-and-documents/AEP%20Plc%20Annual%20Report%202022%20-Web%20version.pdf

Their small Malaysian operation has very old trees. It wouldn't surprise me if they either sell it or make a big acquisition there. I think they'll feel that having a small operation with very old trees doesn't make much sense.

[gaiusgracchus] 27/11/2023 09:18

MPEvans buys two Indonesian plantations for $8900/ha of planted area. 90% planted between 2017 and 2019 so their best days ahead. What are AEP's planted hectares worth? They have 68.6k. On same valuation that is $577m, excluding the plasma hectares. Does anyone know if they publish an age profile of their plantations?

[34adsaddsa] 23/11/2023 20:34

Panmure Gordon are managing it and there have been 7 day gaps before. They have until next June to complete it.

[ntv] 23/11/2023 08:31

I wonder why they appear to have stopped the buyback?

[beresford99] 21/11/2023 15:11

I must say. I’m very unimpressed with the recent half hearted share buy back, MPE with a much smaller cash balance is spending nearly 5x more. The majority shareholders and other Indonesian planters must be itching to get their hands on the the 76,000 hectares and that massive cash pile. They’re probably hoping that us long suffering minority shareholders will become so fed up we’ll accept an offer, I would say in the region of around £10.

[chillpill] 06/11/2023 07:12

The cynic in me says this is being primed to be taken private in the coming months….

[foxfox79] 04/11/2023 14:54

Ofc nobody is short, only a complete idiot would be short.

[34adsaddsa] 27/10/2023 11:16

I very much doubt anyone is short. It's just the usual story and negative sentiment around the Chinese economy won't help.

The Rupiah has been weak recently vs the dollar (flat vs the pound) and our cash is mostly in Rupiah. The central bank has just increased interest rates to 6%, probably partly to counter that.

[ntv] 27/10/2023 08:29

Dropping like a stone for some reason. any clues other than probably shorters?

[34adsaddsa] 29/9/2023 00:39

Looks like AEP staff went on a bit of a team building jolly.

[skanjete2] 16/9/2023 08:09

A sale is possibility. It appears that the heirs of Mdm Lim are not really interested in running a palm plantation.

But first they'll have to buy out the minorities. At the right price, this would be very value enhancing.

Also, I suppose that Malaysia will have to be sold.

[tigerbythetail] 14/9/2023 15:16

Hi Foxfox!
I agree that's what you would do if you were looking to sell the business.
But then again, that's what good directors should do anyway. So it's not clear for me.
Certainly, we are in new times here. And they are better times.

[foxfox79] 07/9/2023 12:12

Recent events increase likelihood of a sale imho, divestiture of poor performing parts, divi increase, share buyback, i would not be suprised...

[34adsaddsa] 07/9/2023 04:25

Trades ex-div today.

[34adsaddsa] 05/9/2023 21:52

If this turns out to be a "long term reasonable dividend value share" then it's because the management haven't properly allocated the excess capital. It should be a lot more than that.

[beresford99] 04/9/2023 19:09

I was going to buy MPE until I did some research on AEP and saw how cheap it was in comparison, that’s not to say MPE itself isn’t a bargain. I sold some Bumitama Agri last week at a small loss and topped up at £7.40.Hopefully,AEP is turning out to be long term reasonable dividend value share, if there is a pullback - which I doubt - I will be adding.

[tigerbythetail] 04/9/2023 14:41

We're on a nice slow crawl upwards. There's almost no liquidity in this share, so the buyback could be really effective. The interim dividend won't do any harm, either.
IMO, still massively undervalued. Just compare EV and size of operations to direct competitor MPE - and I don't think MPE is overvalued at all.

[catsick] 31/8/2023 12:49

At 3k a day they can keep going for 5 months.... I think we run into a lack of liquidity and get a nice rise in the price