20/06/2012 (Bernama) - MIDF Research is confident that there is plenty of value to be realised for Felda Global Venture Holdings (FGVH) under the company's new business model.

MIDF said FGVH is expected to spend RM2.19 billion from its initial public offering (IPO) proceeds of RM9.96 billion for landbank expansion and RM100 million for improving operating efficiency.

"FGVH would continue to focus on acquiring additional land with primary focus on Southeast Asia and Africa," it said in a research note on Wednesday.

It said the company, which is also the world's third largest oil palm planter, will undertake an aggressive replanting programme and apply better estate management process.

The company is targeting to increase its fresh fruit bunches (FFB) production by one metric tonne per hectare annually by 2013 and to replant 15,000 hectares per annum until 2015, which is expected to cost the company approximately RM200 million per annum.

Currently, the company's FFB production stands at 19.9 metric tonnes per hectare.