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Palm oil and rubber plantation company PT Bakrie Sumatera Plantations has won approval from shareholders to launch a Rp 4.96 trillion ($530 million) rights issue to help finance a number of acquisitions and working capital.

President director Ambono Janurianto said about Rp 1.1 trillion would be used to finance the acquisition of a number of assets of the Domba Mas Group, which specializes in oleochemicals and palm oil products. He hopes the deal will be completed within two weeks.

Speaking after an extraordinary shareholder meeting on Tuesday, Ambono said the company would also acquire two palm oil and one rubber plantation companies. He said the acquisition plans were part of the company’s efforts to become a major integrated crude palm oil processing company. He projected that revenues would increase by 25 percent this year, without providing further details.

Under the rights issue plan, the company will issue 9.45 billion new shares at a price of Rp 525 per share.

Shares in PT Bakrie Sumatera Plantations ended 3.5 percent lower at Rp 560 on Tuesday as investors are concerned that the rights issue plan will dilute their holdings, analysts said.

Ambono added that the company has been in talks with creditors about restructuring debts owed by the Domba Mas units, which are worth a combined $269 million. Bakrie Sumatera has proposed that the repayment of the debts be extended for another seven years. The creditors include Credit Suisse, Procter & Gamble and PT Bank Mandiri.

He said that once Bakrie Sumatera acquires the Domba Mas assets, it will maintain the existing oleochemicals sale contract with P&G, the US consumer goods giant. One of Domba Mas’s prized assets is an oleochemicals plant in Kuala Tanjung, North Sumatra. The company in 2005 signed a 10-year contract with P&G to supply fatty alcohol worth $1 billion.

Oleochemicals are derived from biological oils and are used to produce biodiesel as well as cosmetics.