MARKET DEVELOPMENT
EHP Buy Presents Unparalleled Strategic Fit For FGV
EHP Buy Presents Unparalleled Strategic Fit For FGV
07/07/2015 (Bernama) - The Eagle High Plantation (EHP) landbank, which presents the largest contiguous landbank from a single vendor, is also an unparalleled strategic fit for Felda Global Ventures Holdings Bhd (FGV).
In a statement today, FGV said it has been looking outside of Malaysia for some time, including Africa, Myanmar and Indonesia.
FGV said the 37 per cent stake buy made it the single largest shareholder in EHP, which also provided the group with policy control as well as board representation.
"We are pleased to have the local parties to continue run the firm with our input, as there is continuity and great expertise with the local team," it said.
FGV said it was also crucial to dispel the perception that Indonesian transactions should be priced lower than Malaysian transactions due to nature of the land tenure (freehold vs leasehold).
"A key element to examine our valuation is based on the economic value of the land. Indonesian plantations have higher yields than Malaysia's because the soil in Indonesia have gone through less planting cycle here," it said.
FGV said in the final analysis, this was a purely commercial transaction, which will result in the making of an ASEAN palm oil giant, a global game-changer with clear benefits for both countries and companies.
"Political innuendos and references to other government-linked companies and personal relationships are unnecessary and take away from the fact that this transaction will be a game-changer for the palm oil industry globally," it said.
FGV said it was firmly on its way to achieving the goals as set out in its five-year transformation plan driven by three thrusts of revenue enhancement, cost-optimisation and operational excellence.
In a statement today, FGV said it has been looking outside of Malaysia for some time, including Africa, Myanmar and Indonesia.
FGV said the 37 per cent stake buy made it the single largest shareholder in EHP, which also provided the group with policy control as well as board representation.
"We are pleased to have the local parties to continue run the firm with our input, as there is continuity and great expertise with the local team," it said.
FGV said it was also crucial to dispel the perception that Indonesian transactions should be priced lower than Malaysian transactions due to nature of the land tenure (freehold vs leasehold).
"A key element to examine our valuation is based on the economic value of the land. Indonesian plantations have higher yields than Malaysia's because the soil in Indonesia have gone through less planting cycle here," it said.
FGV said in the final analysis, this was a purely commercial transaction, which will result in the making of an ASEAN palm oil giant, a global game-changer with clear benefits for both countries and companies.
"Political innuendos and references to other government-linked companies and personal relationships are unnecessary and take away from the fact that this transaction will be a game-changer for the palm oil industry globally," it said.
FGV said it was firmly on its way to achieving the goals as set out in its five-year transformation plan driven by three thrusts of revenue enhancement, cost-optimisation and operational excellence.