MARKET DEVELOPMENT
FGV In Final Stage Of Acquiring Stake In Eagle High Plantations
FGV In Final Stage Of Acquiring Stake In Eagle High Plantations
11/09/2015 (Bernama) - Felda Global Ventures Holdings Bhd (FGV) is in the final stage of discussions to acquire a 37 per cent stake in Indonesian plantations company, PT Eagle High Plantations (EHP), from Rajawali Group, said FGV chairman Tan Sri Mohd Isa Abdul Samad.
He said the plan to acquire the stake was expected to enhance group profit in the long term as well as strengthen FGV's position in the oil palm plantation sector in that country.
"Besides that, it will also broaden the company's oil palm plantations, in an effort to expand its business and improve the group's earnings," he said to reporters after presenting the fourth Curriculum Excellence Award 2015 at Sekolah Menengah Kebangsaan Trolak here, today.
He said FGV would convene its extraordinary general meeting (EGM) soon and the company's shareholders would determine whether or not the company should proceed with the acquisition.
"We have held discussions on this since four or five months ago. This is the most appropriate time eventhough the country is faced with economic uncertainty," he said.
Mohd Isa said FGV had also sent several representatives from its top management as well as Felda settlers to Indonesia to visit the oil palm and sugar cane plantations owned by EHP aimed at assessing the acquisition.
On June 12 this year, FGV signed a heads of agreement with Rajawali Group to acquire a 37 per cent stake in EHP for US$680 million in cash and stocks.
EHP owns 425,000 hectares of oil palm plantations, out of which 67 per cent are in Kalimantan and the rest in Papua New Guinea (9.0 per cent), Sulawesi (19 per cent) and Sumatra (5.0 per cent).
He said the plan to acquire the stake was expected to enhance group profit in the long term as well as strengthen FGV's position in the oil palm plantation sector in that country.
"Besides that, it will also broaden the company's oil palm plantations, in an effort to expand its business and improve the group's earnings," he said to reporters after presenting the fourth Curriculum Excellence Award 2015 at Sekolah Menengah Kebangsaan Trolak here, today.
He said FGV would convene its extraordinary general meeting (EGM) soon and the company's shareholders would determine whether or not the company should proceed with the acquisition.
"We have held discussions on this since four or five months ago. This is the most appropriate time eventhough the country is faced with economic uncertainty," he said.
Mohd Isa said FGV had also sent several representatives from its top management as well as Felda settlers to Indonesia to visit the oil palm and sugar cane plantations owned by EHP aimed at assessing the acquisition.
On June 12 this year, FGV signed a heads of agreement with Rajawali Group to acquire a 37 per cent stake in EHP for US$680 million in cash and stocks.
EHP owns 425,000 hectares of oil palm plantations, out of which 67 per cent are in Kalimantan and the rest in Papua New Guinea (9.0 per cent), Sulawesi (19 per cent) and Sumatra (5.0 per cent).