MP Evans Group (AIM:MPE), the sustainable Indonesian palm oil producer, completed the acquisition of PT Kalimantan Wahana Berjaya (KWB) on 8 September for $2.0 million through its wholly owned subsidiary PT Evans Indonesia.
KWB holds 776 hectares already planted to oil palm, though these require rehabilitation or replanting, plus up to 450 hectares of additional plantable land.
Alongside the KWB deal, the group's subsidiary PT Nusantara Agro Sentosa secured initial land rights over an adjacent 3,600-hectare parcel known as Long Nah, of which survey work indicates approximately 2,000 hectares is suitable for oil palm development.
Combined, the two sites could expand the group's total planted area at its Kota Bangun project in East Kalimantan by more than 3,000 hectares, with total investment expected at $20-25 million over time, equivalent to roughly $7,000-8,000 per planted hectare.
Chief executive Matthew Coulson said the new hectarage, close to the existing Kota Bangun project, "provides a further source of long-term production growth", adding that its location allows crop from the new areas to be processed through the group's existing mills.
That, he said, supports the company's strategy of processing more of its own crop and making efficient use of its milling capacity.
News Intelligence what this means for the company
M.P. Evans has acquired a 776-hectare planted estate and secured rights to develop up to 2,000 additional hectares at its Kota Bangun project for $2 million upfront, with total investment of $20–25 million expected over time. The expansion directly feeds existing mill capacity, allowing the company to process more of its own crop and improve mill utilization—a stated strategic priority—while adding over 3,000 hectares of production scope at $7,000–8,000 per planted hectare.
The deal is capital-efficient relative to the company's recent commodity backdrop: at average CPO prices of US$873/tonne in H1 2026, incremental production from rehabilitated and new plantings should generate cash flow to fund the phased $20–25 million outlay. The acquisition also reduces spare mill capacity risk by securing feedstock growth tied to existing infrastructure, supporting the company's margin profile as it scales.
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