FGV, Dalian Commodity Exchange drop collaboration for palm oil futures internationalisation project
The Edge Markets (16/11/2020) - KUALA LUMPUR (Nov 16): After exactly two years, FGV Holdings Bhd's plan to collaborate with Dalian Commodity Exchange (DCE) via a memorandum of understanding (MoU) on the palm oil futures internationalisation project has fallen through.
In a filing with Bursa Malaysia today, the board of directors of FGV announced that the MoU expired on Nov 14, 2020 and it is not necessary to extend the MoU at this stage.
"The purpose of the MoU was to express our intention to collaborate on the palm oil futures internationalisation project, as DCE's objective is to expand the palm oil futures delivery location regionally, including to Malaysia," said FGV.
None of the directors, major shareholders of the company or persons connected with them have any interest, direct or indirect, in the MoU, said FGV, noting that the expiration of the MoU would not have any financial impact on the group.
At noon break, shares in FGV were one sen or 0.85% higher at RM1.18, valuing the company at RM4.3 billion. Year-to-date, the counter has fallen 24% from RM1.56.