AEP Plantations (LSE:AEP) has completed its acquisition of Admiral Potential Sdn Bhd, which now owns 100% of PT Jaya Jadi Utama (PT JJU), the Indonesia and Malaysia-focused plantation group said.
The deal, first flagged in an RNS on 14 October 2025, gives AEP control of PT JJU's 7,169 hectares of HGU (Right to Cultivate) land in Central Kalimantan, with roughly half deemed plantable under the group's no-deforestation policy.
The concession borders AEP's existing PT Kahayan Agro Plantation (KAP) estate, a roughly 8,000-hectare operation that includes plasma smallholdings and is now fully planted.
Management expects the adjacency to bring logistics and management efficiencies, while the acquired land's fresh fruit bunch output will help feed KAP's new mill as volumes ramp up.
With KAP fully planted, PT JJU offers the group room to expand production capacity over the longer term.
"The acquisition of PT JJU represents another important step in our growth strategy adding feedstock to our new mill in adjacent acreage and making a meaningful contribution to our future potential," said Kevin Wong Tack Wee, group chief executive.
The transaction closes out the process announced last October, with future plantings at PT JJU set to build supply for the KAP mill as it scales up.
News Intelligence what this means for the company
AEP Plantations has closed its acquisition of Admiral Potential Sdn Bhd, securing 7,169 hectares of plantable land in Central Kalimantan adjacent to its existing 8,000-hectare KAP estate. The deal unlocks logistics efficiencies and provides feedstock for KAP's newly commissioned mill as it scales production—a direct capacity expansion lever for a group that reported $465.2m revenue and 425.8k tonnes of CPO output in 2025.
The acquisition removes a near-term constraint: KAP is fully planted and its new mill needs volume to justify capital. PT JJU's fresh fruit bunch output directly feeds that mill ramp, while adjacency cuts operating costs. This is a bolt-on that converts idle mill capacity into margin, not a speculative land play.
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