MARKET DEVELOPMENT
FGV: PUP Already Contributes 20 Per Cent Profit In February 2014
FGV: PUP Already Contributes 20 Per Cent Profit In February 2014
05/04/2014 (Bernama) -- Felda Global Ventures Holdings Bhd (FGV) today said Pontian United Plantations Bhd (PUP) has already contributed a 20 per cent profit to the group's plantations business for February 2014.
PUP is FGV's first acquisition after its listing and was considered as a strategic move, whereby it is expected to make full contribution this year as it is now a fully counted asset of FGV.
FGV Group President and Chief Executive Officer, Mohd Emir Mavani Abdullah, said the price for the acquisition proposals FGV had received ranged from RM50,000 to RM75,000 per hectare (ha).
"It is depending on the type of plantation and infrastructure available and not RM50,000 to RM55,000 per acre as previously reported," he said in a statement here today.
FGV felt that the acquisition of PUP is one of the best deals last year as it came with facilities such as mills, kernel crushing plant, a quarry which has more than 100 years of life and also good infrastructure.
The PUP acquisition also has a cash balance of RM250 million and zero debt, in addition to a pool of talent and highly-skilled management.
It was fully acquired on Oct 30, 2013 and the exercise had cost FGV RM1.2 billion, with the main assets being mature oil palm plantations spanning more than 16,000ha.
PUP is FGV's first acquisition after its listing and was considered as a strategic move, whereby it is expected to make full contribution this year as it is now a fully counted asset of FGV.
FGV Group President and Chief Executive Officer, Mohd Emir Mavani Abdullah, said the price for the acquisition proposals FGV had received ranged from RM50,000 to RM75,000 per hectare (ha).
"It is depending on the type of plantation and infrastructure available and not RM50,000 to RM55,000 per acre as previously reported," he said in a statement here today.
FGV felt that the acquisition of PUP is one of the best deals last year as it came with facilities such as mills, kernel crushing plant, a quarry which has more than 100 years of life and also good infrastructure.
The PUP acquisition also has a cash balance of RM250 million and zero debt, in addition to a pool of talent and highly-skilled management.
It was fully acquired on Oct 30, 2013 and the exercise had cost FGV RM1.2 billion, with the main assets being mature oil palm plantations spanning more than 16,000ha.