Wilmar to buy 20 pct of Indonesian palm oil firm

SINGAPORE Aug 13 (Reuters) - Singapore's Wilmar International (WLIL.SI), the world's largest listed palm oil firm, will take a 20 percent stake in Kencana Agri (KCAL.SI), the Indonesian firm said on Friday.

The deal involves Kencana, which is also involved in palm oil, raising S$52.5 million via a placement of new shares to Wilmar. The new shares represent about 15 percent of Kencana's enlarged capital.

Kencana's existing shareholder Kencana Holdings will sell another 5 percent of the firm to Wilmar.

The deal values Kencana at S$0.35 a share, which is less than the firm's last traded price of S$0.395.

Reuters reported on Wednesday that Wilmar was planning to take a 20 percent stake in Kencana. [ID:nSGE67A0DV] (Reporting by Kevin Lim; Editing by Jon Loades-Carter)