[SINGAPORE] Despite a verdict from the Indonesian Supreme Court requiring Wilmar International to pay five billion rupiah (S$387,047) worth of fines and a compensation of 11.9 trillion rupiah on corruption charges, the Singapore-based palm oil company has maintained its expectations of a full-year profit.
This comes as Kuok Khoon Hong, chairman and chief executive of the company, scooped up S$2.7 million worth of shares through entities linked to him on Friday (Sep 26).
In an announcement on Friday, Wilmar said that it expects to post a net loss for its third quarter ending Sep 30, following penalties imposed by the court. In addition to the 11.9 trillion rupiah confiscated by Indonesia’s Attorney-General’s Office, five Wilmar subsidiaries charged – namely Multimas Nabati Asahan, Multi Nabati Sulawesi, Sinar Alam Permai, Wilmar Bioenergi Indonesia and Wilmar Nabati Indonesia – will be required to pay a fine of one billion rupiah each.
However, the company still expects to turn a profit for the full year ending Dec 31, it noted.
A separate filing by the company on Friday revealed that three entities – HPRY Holdings Ltd, Longhlin Asia Ltd and Hong Lee Holdings – had each acquired shares at S$2.838 apiece, amounting to a total of 945,200 shares worth S$2.7 million.
Kuok is deemed an interested party in these entities. The acquisition thus means that the Singaporean now holds more than 896 million shares, or a 14.4 per cent stake in Wilmar.
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After the court’s announcement on Thursday, Wilmar’s shares dropped as much as 3.8 per cent to S$2.78 in intra-day trading on Friday – the stock’s lowest price since January 2016.
Indonesia’s Supreme Court had overturned the company’s previous acquittal in a graft case involving cooking oil export permits during the 2021-2022 shortage crisis.
Wilmar, along with two Indonesian palm oil companies Permata Hijau and Musim Mas, had been accused of illegally profiting from the evasion of state-imposed export controls on cooking oil and palm oil.
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The company noted that it regrets, but respects, the court’s decision. “The actions taken by the Wilmar respondents, during the period of a shortage of cooking oil in the Indonesian market, were done in compliance with prevailing regulations and in good faith,” said Wilmar.
Shares of Wilmar fell 1.4 per cent or S$0.04 on Friday before the announcement, to reach S$2.85 at market close.
