MARKET DEVELOPMENT
FGV Delists Asian Plantations From UK's Aim Market
FGV Delists Asian Plantations From UK's Aim Market
12/10/2014 (Bernama) - Felda Global Ventures Holdings Bhd (FGV) has delisted Asian Plantations Ltd (APL) from the London Stock Exchange's AIM market.
The move comes after FGV completed its purchase of APL, securing all of its traded shares, FGV said in a statement today.
"FGV will now work towards the timely integration of APL as a wholly-owned subsidiary, maximising the commercial opportunities and competitive advantages it offers," it said.
Group President and Chief Executive Officer Datuk Mohd Emir Mavani Abdullah said upon the delisting of APL, FGV is now looking forward to fully integrating APL, giving a considerable boost to FGV's business operations and growth.
"The purchase of APL makes great sense from a valuation and operational standpoint. APL will increase FGV's landbank by 7.0 per cent, it will boost crude palm oil production, and introduce a younger crop profile," he said.
APL owns 24,622 hectares of oil palm plantations through its five wholly-owned estates in Miri and Bintulu, Sarawak and its estates are serviced by a 60 tonne per hour palm oil mill within the estates and are within easy reach of the deep-water port of Bintulu.
At an enterprise value of RM62,358 per planted hectare, Emir said APL represents a fairly priced and value-added deal which is in line with FGV's expansion roadmap through organic and inorganic growth.
"Apart from contributing positively to FGV in the long term, APL's integration into FGV will give rise to cost savings from operational synergies and increase FGV's lead in sustainable palm oil production," he added.
The move comes after FGV completed its purchase of APL, securing all of its traded shares, FGV said in a statement today.
"FGV will now work towards the timely integration of APL as a wholly-owned subsidiary, maximising the commercial opportunities and competitive advantages it offers," it said.
Group President and Chief Executive Officer Datuk Mohd Emir Mavani Abdullah said upon the delisting of APL, FGV is now looking forward to fully integrating APL, giving a considerable boost to FGV's business operations and growth.
"The purchase of APL makes great sense from a valuation and operational standpoint. APL will increase FGV's landbank by 7.0 per cent, it will boost crude palm oil production, and introduce a younger crop profile," he said.
APL owns 24,622 hectares of oil palm plantations through its five wholly-owned estates in Miri and Bintulu, Sarawak and its estates are serviced by a 60 tonne per hour palm oil mill within the estates and are within easy reach of the deep-water port of Bintulu.
At an enterprise value of RM62,358 per planted hectare, Emir said APL represents a fairly priced and value-added deal which is in line with FGV's expansion roadmap through organic and inorganic growth.
"Apart from contributing positively to FGV in the long term, APL's integration into FGV will give rise to cost savings from operational synergies and increase FGV's lead in sustainable palm oil production," he added.