MARKET DEVELOPMENT
FGV Mulls Revising US$680m Purchase of PT Eagle High Plantations
FGV Mulls Revising US$680m Purchase of PT Eagle High Plantations
02/09/2015 (The Star) - Felda Global Ventures Holdings Bhd is believed to be mulling the possibility to revise the terms for its US$680mil agreement to buy a stake in Indonesia’s PT Eagle High Plantations, according to Bloomberg.
The wire report said on Tuesday the reason for the revision in the price tag could be due to issues discovered during the due diligence of the company.
In June 2015, the two companies inked a preliminary agreement and said they plan to announce a final pact by mid-August, a deadline that has since been extended to Oct. 31.
On Aug 14, Felda said it had “substantially completed” due diligence and was in the process of negotiating the terms of the definitive documentation.
Bloomberg reported Eagle High shares have fallen 42% since the initial deal was announced, while crude palm oil has dropped 12%. It owns about 425,000 hectares of land, of which 152,000 hectares have been planted.
Crude palm oil for third month delivery rose RM6 to RM1,997 per tonne at 5pm on Tuesday.
The wire report said on Tuesday the reason for the revision in the price tag could be due to issues discovered during the due diligence of the company.
In June 2015, the two companies inked a preliminary agreement and said they plan to announce a final pact by mid-August, a deadline that has since been extended to Oct. 31.
On Aug 14, Felda said it had “substantially completed” due diligence and was in the process of negotiating the terms of the definitive documentation.
Bloomberg reported Eagle High shares have fallen 42% since the initial deal was announced, while crude palm oil has dropped 12%. It owns about 425,000 hectares of land, of which 152,000 hectares have been planted.
Crude palm oil for third month delivery rose RM6 to RM1,997 per tonne at 5pm on Tuesday.