Mission NewEnergy Limited (NASDAQ:MNEL, ASX:MBT), a global provider of environmentally sustainable biofuels, is pleased to announce the acquisition of an 85% stake in Oleovest Pte Ltd, a company incorporated in Singapore.
Oleovest is a special purpose company which has a 70% equity stake in PT Sinergi Oleo Nusantara (“PTSON”), a newly formed joint venture company in Indonesia which is 30% owned by PT Perkebunan Nusantara III (“PTPN III”).
Under the Joint Venture Agreement, PTSON will establish a new downstream palm oil and oleo-chemical complex at the PTPN III owned Sei Mangkei Industrial Zone in North Sumatra, which in the first stage is expected to consist of a 600,000 tpa edible oil refinery, a 250,000 tpa Methyl Ester (“biodiesel”) plant and a 100,000 tpa Fatty Alcohol plant.
The project to be built at an estimated cost of US$200 million will require successfully arranging approximately US$140 million in debt and US$60 million in equity, before construction begins. To start with, Mission will invest approximately US$3.0 million to acquire the stake and fund the initial operations of PTSON. Once fully funded, it is anticipated that the project would be implemented over approximately 3 years.
“This is a good opportunity and new strategic direction for Mission as the company looks to diversify into a more established and rateable business” said Nathan Mahalingam, Group CEO of Mission.
Source: Mission NewEnergy Announcement (Via Bloomberg)