MARKET DEVELOPMENT
FGV: Emir is Still in Office
FGV: Emir is Still in Office
22/07/2015 (The Star) - Felda Global Ventures Holdings Bhd (FGV) has confirmed a StarBiz report that Datuk Mohd Emir Mavani Abdullah is still in charge.
“We wish to inform that Emir is still the group president and CEO of FGV,” the plantation company said in a statement yesterday.
FGV, however, did not provide details on the duration of Emir’s supposedly extended contract. The company said all official announcements would be made to Bursa Malaysia accordingly.
On Tuesday, StarBiz reported that Emir’s contract that ended last Wednesday was extended. Quoting sources, the report said Emir’s contract to helm the plantation group was likely to be renewed for another year.
Emir was appointed on July 15, 2013 under a two-year contract with an option to extend another year.
FGV’s shares have dropped 61.5% to RM1.75 as of yesterday since its listing in June 2012. Its initial public offering price was RM4.55 per share. Year-to-date, the plantation giant have fallen some 20%.
A Bloomberg consensus shows that of the 17 analysts covering the stock, only one have “buy” call while the eight have “hold” and another eight with “sell” calls.
FGV’s market capitalisation have more than halved since its debut on Bursa Malaysia and its proposal to acquire a 37% stake in Indonesia’s PT Eagle High Plantations for US$680mil (RM2.5bil) on June 12 was criticised as being an expensive deal.
Emir has defended the Eagle High deal as FGV was paying a lower enterprise value (EV) at US$17,400 per planted ha, contrary to market talk that its purchase of Indonesia’s third largest listed oil palm planter was overpriced.
FGV pointed out that based on a comparative analysis, Sime Darby Bhd paid a higher EV per planted ha of US$25,900 for New Britain Oil Palm Ltd in 2014, while IOI Corp Bhd forked out an EV of US$23,500 per planted ha for Unico-Desa Plantations Bhd in 2013.
For the first quarter ended March 31, FGV’s net profit plunged 98% to RM3.58mil from RM143.63mil a year ago due to lower crude palm oil price and production. Its revenue for the quarter dropped 20.4% year-on-year to RM2.96bil from RM3.73bil.
“We wish to inform that Emir is still the group president and CEO of FGV,” the plantation company said in a statement yesterday.
FGV, however, did not provide details on the duration of Emir’s supposedly extended contract. The company said all official announcements would be made to Bursa Malaysia accordingly.
On Tuesday, StarBiz reported that Emir’s contract that ended last Wednesday was extended. Quoting sources, the report said Emir’s contract to helm the plantation group was likely to be renewed for another year.
Emir was appointed on July 15, 2013 under a two-year contract with an option to extend another year.
FGV’s shares have dropped 61.5% to RM1.75 as of yesterday since its listing in June 2012. Its initial public offering price was RM4.55 per share. Year-to-date, the plantation giant have fallen some 20%.
A Bloomberg consensus shows that of the 17 analysts covering the stock, only one have “buy” call while the eight have “hold” and another eight with “sell” calls.
FGV’s market capitalisation have more than halved since its debut on Bursa Malaysia and its proposal to acquire a 37% stake in Indonesia’s PT Eagle High Plantations for US$680mil (RM2.5bil) on June 12 was criticised as being an expensive deal.
Emir has defended the Eagle High deal as FGV was paying a lower enterprise value (EV) at US$17,400 per planted ha, contrary to market talk that its purchase of Indonesia’s third largest listed oil palm planter was overpriced.
FGV pointed out that based on a comparative analysis, Sime Darby Bhd paid a higher EV per planted ha of US$25,900 for New Britain Oil Palm Ltd in 2014, while IOI Corp Bhd forked out an EV of US$23,500 per planted ha for Unico-Desa Plantations Bhd in 2013.
For the first quarter ended March 31, FGV’s net profit plunged 98% to RM3.58mil from RM143.63mil a year ago due to lower crude palm oil price and production. Its revenue for the quarter dropped 20.4% year-on-year to RM2.96bil from RM3.73bil.