MARKET DEVELOPMENT
FGV To Conclude Due Diligence By End-August
FGV To Conclude Due Diligence By End-August
05/08/2015 (Bernama) - Felda Global Ventures Holdings Bhd (FGV)hopes to conclude its due diligence exercise pertaining to the acquisition of 37 per cent stake in PT Eagle High Plantations (EHP) by end-August.
Chief Executive Officer, Datuk Mohd Emir Mavani Abdullah, said to date, the group has reached 75 per cent due diligence exercise for the acquisition.
"We have a bit more to finish. Once it is done, we are going to have an internal discussions and go through normal process with our board and everything else," he told reporters after the handing over of "Buku Laporan Lawatan ke PT Eagle High Plantations, Indonesia" to smallholders' representatives.
Also presence was Deputy Minister in Prime Minister's Department Datuk Razali Ibrahim.
In June, FGV announced that it had signed a heads of agreement with Rajawali Group to acquire the stake in EHP for US$680 million in cash and stocks.
This would result in Rajawali Group owning 2.6 per cent of the enlarged FGV share base.
FGV will also acquire between 93 and 95 per cent stake in Rajawali Group's sugar project for US$67 million.
The stakes in EHP and Rajawali Group's sugar project will be owned by FGV Kalimantan Sdn Bhd, a unit of FGV.
Meanwhile, Mohd Emir said FGV's effort to lead the development of special economic zone for palm oil downstream processing in Indonesia would be positive for the group.
"What we share basically is our expertise on downstream and our global presence.
"What they intend to do is grow their downstream further because the supply of raw materials, especially palm kernel and palm kernel oil, are in abundance in Indonesia and the sources of materials are much more cheaper," he said.
According an early report, FGV will lead efforts to develop a special economic zone for palm oil downstream processing in Indonesia.
Razali was quoted as saying that the project is expected to materialise in 18 months.
Chief Executive Officer, Datuk Mohd Emir Mavani Abdullah, said to date, the group has reached 75 per cent due diligence exercise for the acquisition.
"We have a bit more to finish. Once it is done, we are going to have an internal discussions and go through normal process with our board and everything else," he told reporters after the handing over of "Buku Laporan Lawatan ke PT Eagle High Plantations, Indonesia" to smallholders' representatives.
Also presence was Deputy Minister in Prime Minister's Department Datuk Razali Ibrahim.
In June, FGV announced that it had signed a heads of agreement with Rajawali Group to acquire the stake in EHP for US$680 million in cash and stocks.
This would result in Rajawali Group owning 2.6 per cent of the enlarged FGV share base.
FGV will also acquire between 93 and 95 per cent stake in Rajawali Group's sugar project for US$67 million.
The stakes in EHP and Rajawali Group's sugar project will be owned by FGV Kalimantan Sdn Bhd, a unit of FGV.
Meanwhile, Mohd Emir said FGV's effort to lead the development of special economic zone for palm oil downstream processing in Indonesia would be positive for the group.
"What we share basically is our expertise on downstream and our global presence.
"What they intend to do is grow their downstream further because the supply of raw materials, especially palm kernel and palm kernel oil, are in abundance in Indonesia and the sources of materials are much more cheaper," he said.
According an early report, FGV will lead efforts to develop a special economic zone for palm oil downstream processing in Indonesia.
Razali was quoted as saying that the project is expected to materialise in 18 months.