MARKET DEVELOPMENT
FGV To Decide On Eagle High Deal By August
FGV To Decide On Eagle High Deal By August
17/06/2015 (Bernama) - Felda Global Ventures Holdings Bhd (FGV) will decide by August on whether to proceed with the acquisition of PT Eagle High Plantations (EHP) or otherwise.
Chief Executive Officer Datuk Mohd Emir Mavani Abdullah said the deal's fate rested on the satisfactory completion of the due diligence being undertaken and shareholders' approval at an extraordinary general meeting slated for August.
"The due diligence on the potential acquisition will be completed in a month's time," he told a press conference after FGV's annual general meeting here today.
FGV, on June 12, proposed to acquire a 37 per cent stake in EHP, the third largest oil palm company in Indonesia, from the Rajawali Group for about US$680 million.
The deal has since received much negative feedback from the market and taken a toll on the company's share price.
When asked on the ideal percentage of shareholders approval at the EGM, Mohd Emir said FGV hoped to get 100 per cent approval.
He said FGV was keen on the acquisition as it would provide access to a formidable Indonesian platform with significant revenue and cross-selling opportunities through Rajawali Group's extensive network.
EHP owns 425,000 hectares of land in Kalimantan, Papua, Sulawesi and Sumatera, with a planted hectarage of 137,000 and an age profile of 36 per cent immature, 50 per cent young and 14 per cent prime palm trees.
Mohd Emir also said Indonesia was one of the "friendlier" countries to operate in, especially given FGV's existing exposure there, with over 7,000 hectares of land.
Under the heads of agreement it signed with Rajawali Group, FGV will also acquire an up to 95 per cent stake in its sugar project for US$67 million.
The AGM today was stretched to over five hours due to a poll to increase the director's fees to RM2.091 million for 2014 from RM2.039 million in 2013.The move received approval.
Chief Executive Officer Datuk Mohd Emir Mavani Abdullah said the deal's fate rested on the satisfactory completion of the due diligence being undertaken and shareholders' approval at an extraordinary general meeting slated for August.
"The due diligence on the potential acquisition will be completed in a month's time," he told a press conference after FGV's annual general meeting here today.
FGV, on June 12, proposed to acquire a 37 per cent stake in EHP, the third largest oil palm company in Indonesia, from the Rajawali Group for about US$680 million.
The deal has since received much negative feedback from the market and taken a toll on the company's share price.
When asked on the ideal percentage of shareholders approval at the EGM, Mohd Emir said FGV hoped to get 100 per cent approval.
He said FGV was keen on the acquisition as it would provide access to a formidable Indonesian platform with significant revenue and cross-selling opportunities through Rajawali Group's extensive network.
EHP owns 425,000 hectares of land in Kalimantan, Papua, Sulawesi and Sumatera, with a planted hectarage of 137,000 and an age profile of 36 per cent immature, 50 per cent young and 14 per cent prime palm trees.
Mohd Emir also said Indonesia was one of the "friendlier" countries to operate in, especially given FGV's existing exposure there, with over 7,000 hectares of land.
Under the heads of agreement it signed with Rajawali Group, FGV will also acquire an up to 95 per cent stake in its sugar project for US$67 million.
The AGM today was stretched to over five hours due to a poll to increase the director's fees to RM2.091 million for 2014 from RM2.039 million in 2013.The move received approval.