28/08/2012 (Business Times) - Felda Global Ventures Holdings Bhd (FGV), among the world's top three plantation companies by hectarage, is in talks to buy an initial 30,000ha of land in Myanmar to grow sugarcane, for a start.

The Myanmar expansion marks FGV's maiden venture abroad.

FGV, which is controlled by government-owned Felda Land Development Authoruty (Felda), is Malaysia's largest oil palm land scheme owner and manager since 1956.

FGV president and group chief executive officer Datuk Sabri Ahmad said for starters, the recently-listed entity plans to grow sugarcane and plant oil palm as it buys more land in Myanmar.

"We are in talks with a local partner and we plan to set up a joint venture. Talks are ongoing and we are conducting feasibility and technical studies," Sabri told Business Times recently.

FGV also controls listed MSM Malaysia Holdings Bhd, the country's largest sugar producer.

Sabri said the cash-rich FGV, which has a war chest of RM4.5 billion raised from its initial public offering (IPO) in June, is also looking and evaluating several parcels of land in Malaysia and Indonesian brownfields.

Sabri said last week that it plans to buy 150,000 hectares estate land over five years as part of its vision to emerge as the leader in the global oil palm industry with a total landbank of one million hectares by 2020.

Sabri said the potential Asean countries are Indonesia, Cambodia and Myanmar.

FGV, which produces seven per cent of the world's crude palm oil, currently owns 343,521 hectares of plantation land and manages another 500,000ha owned by 112,635 Felda settlers nationwide.

Sabri was part of Prime Minister Datuk Seri Najib Razak's entourage during the latter's official visit to Myanmar in April.

Prospects in Myanmar look good as the US is set to lift its economic sanctions on the military junta.

Felda is already trading palm olein, condensed milk, instant noodles and margarine with the country, via its cooking oil maker and distributor Delima Oil Products.

Myanmar owns 20,000 hectares of oil palm estates grown by a local company.

Meawhile, Sabri said the company is expected to announce its second quarter financial results ended June today.

In its first quarter ended March 2012, FGV saw net profit almost halved to RM192.1 million from RM359.0 million in the comparable period a year ago due to higher replanting and material costs.