MARKET DEVELOPMENT
FGV To Dispose Of Non-Core Businesses By Q3 2015
FGV To Dispose Of Non-Core Businesses By Q3 2015
07/05/2015 (Bernama) - Felda Global Ventures Holdings Bhd (FGV) will complete the disposal of its non-core businesses by the third quarter (Q3)of 2015, said group president and chief executive officer, Datuk Mohd Emir Mavani Abdullah.
The disposal, which includes Felda Travel, Felda Property and Felda Prodata Systems, will be carried out through the open tender process.
FGV would then focus on its core business of being a fully-integrated plantation player in the oil palm, sugar and rubber sectors, Mohd Emir said after signing two memoranda of collaboration (MoC) here, today.
The first MoC was signed with the Forest Research Institute Malaysia (FRIM) to set up the first Rafflesia Conservation and Interpretive Centre, while the other was with the Department of Wildlife and National Parks to set up the Sun Bear Conservation programme.
On outlook, Mohd Emir said 2015 would generally be a bearish year for plantation companies everywhere and FGV planned to sustain earnings through increasing its brownfield landbank.
"This is because our new brownfield (plantation) will not be affected by the land lease agreement (LLA)," he said.
The LLA was said to have complicated the company's fair value accounting, subsequently impacting its profits and FGV is still in the process of negotiating with the Federal Land Development Authority on getting a good mechanism for the LLA.
FGV has committed to replanting 15,000 hectares a year and so far, it has replanted over 44,000 hectares.
"We are going to focus on areas with trees that are very old. So far, we have seen improvements in terms of our fresh fruit bunches production.
"A full-blown result of the programme could only be seen in 2019 to 2020," he added.
The disposal, which includes Felda Travel, Felda Property and Felda Prodata Systems, will be carried out through the open tender process.
FGV would then focus on its core business of being a fully-integrated plantation player in the oil palm, sugar and rubber sectors, Mohd Emir said after signing two memoranda of collaboration (MoC) here, today.
The first MoC was signed with the Forest Research Institute Malaysia (FRIM) to set up the first Rafflesia Conservation and Interpretive Centre, while the other was with the Department of Wildlife and National Parks to set up the Sun Bear Conservation programme.
On outlook, Mohd Emir said 2015 would generally be a bearish year for plantation companies everywhere and FGV planned to sustain earnings through increasing its brownfield landbank.
"This is because our new brownfield (plantation) will not be affected by the land lease agreement (LLA)," he said.
The LLA was said to have complicated the company's fair value accounting, subsequently impacting its profits and FGV is still in the process of negotiating with the Federal Land Development Authority on getting a good mechanism for the LLA.
FGV has committed to replanting 15,000 hectares a year and so far, it has replanted over 44,000 hectares.
"We are going to focus on areas with trees that are very old. So far, we have seen improvements in terms of our fresh fruit bunches production.
"A full-blown result of the programme could only be seen in 2019 to 2020," he added.