JAKARTA, Oct 20 (Reuters) - PT Eagle High Plantations Tbk , the plantation unit of Indonesian conglomerate Rajawali Group, has secured a 2.74 trillion rupiah ($201 million) loan from PT Bank Negara Indonesia Tbk, an executive said on Tuesday.
Eagle High Corporate Secretary Rudy Suhendra told Reuters by phone the loan will be used to refinance existing debt, make upcoming payments on bonds and build a new palm oil mill. Eagle High pledged some plantations as well as palm oil factories owned by its five subsidiaries as security for the loan, Suhendra said.
In June, Malaysia’s Felda Global Ventures Holdings Bhd said it will buy 37 percent of Eagle High from Rajawali for $680 million.
Felda said last month that it was “taking additional steps” to ensure its purchase brings value to shareholders. The statement came after Malaysian newspaper The Star reported, citing unidentified sources, that Felda had not paid a $174.5 million deposit due for the stake purchase.
Talks with Felda are continuing, Eagle High’s Suhendra said on Tuesday, declining to give more details. (Reporting by Cindy Silviana; Writing by Eveline Danubrata; Editing by Kenneth Maxwell)